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

 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?

 Answer

Decrease of $20.

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