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  3. kensington corp. reports net income of $280,000 fo

Kensington Corp. reports net income of $280,000 for the year ended December 31, 2020. The...

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Accounting

  1. Kensington Corp. reports net income of $280,000 for the year ended December 31, 2020. The company recorded an unrealized loss on available-for-sale debt securities of $15,000 (after tax) for the year ended December 31, 2020 and deferred the loss in AOCI. The company declared dividends of $40,000 for the year and its tax rate is 25%. The December 31, 2019, balance in accumulated other comprehensive income is $18,000 (debit balance) and the balance in retained earnings is $100,000 (credit balance).

    What is the ending balance in accumulated other comprehensive income and retained earnings on December 31, 2020?

    a.

    Accumulated OCI Retained Earnings

    $18,000 debit $380,000 credit
    b.

    $3,000 debit $380,000 credit
    c.

    $18,000 debit $340,000 credit
    d.

    $33,000 debit $340,000 credit

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