The For the Birds Company had the following assets and liabilities at the beginning and end of calendar 2020:

Assets Liabilities

Beginning of the year $60,000 $20,000

End of the year $105,000 $36,000

Required:

Determine Net Income or Net Loss for the Company during the year for each of the following separate situations:

1. Owner makes no investments in the business, and no dividends were paid during the year
2. Owner makes no investments in the business, but dividends of $1,250 were paid in cash each month
3. Owner made an additional investment of $55,000 in cash in exchange for Common Stock, and no dividends were paid during the year
4. Owner made an additional investment of $35,000 in cash in exchange for Common Stock, and dividends of $1,250 were paid in cash each month