Consider the following two separate events for a company during the year:

1. Loss on sale of investments = $20. 2. Unrealized gain on investment from increase in fair value = $30. The company reports the unrealized gain as a component of other comprehensive income. By how much would these two events affect the balance of retained earnings, ignoring tax effects?

Multiple Choice

• Decrease of $20.

• Increase of $10.

• Increase of $30.

• Decrease of $10.