Following are the total assets and liabilities at the beginning and end of the year for Maren Company.

Beginning of Year:Assets:80,000,Liabilities:35,000

End of year:Assets:118,000,Liabilitites:40,000

Determine the net income or loss for the year in each of the following situations:

a. The owner made no investments in the business and no withdrawals were made during the year.

b. The owner made an investment of 20,000 and withdrew 12,000 during the year.

Show calculations.