Which of the following describes one of the relationships between Income Statement and Shareholders Equity?

		There is no direct relationship between Income Statement and Shareholders Equity
		If the sum of Income Statement results in a negative amount, this is added to Common Stock at the end of the firms year
		If the sum of Income Statement results in a positive amount, this is subtracted from Retained Earnings at the end of the firms year
		If the sum of Income Statement results in a negative amount, this is subtracted from Additional Paid-In Capital at the end of the firms year
		If the sum of Income Statement results in a positive amount, this is added to Retained Earnings at the end of the firms year

Please kindly help me out with this question and tell me the reason as well. Thank you.