3. The cash account in the current asset section of the December 31, 2020 balance sheet of King Company consists of the following: 2,250,000 3,000,000 Cash in Banks Cash restricted for additions to plant (expected to be disbursed in 2022) Petty cash funds (all funds were replenished on December 31, 2020) 30,000 Included in the cash in banks is a compensating balance of 750,000 against short-term borrowing arrangements at December 31, 2020. The compensating balance is not legally limited as to withdrawal by King Company. What is the correct cash balance of King Company at December 31, 2020? a. 2,280,000 b. 4,530,000 C. 3,030,000 d. 5,280,000