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 (pre-tax) for the year ended December 31, 2020. 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?

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 (pre-tax) for the year ended December 31, 2020. 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?

Accumulated OCI: $29,250 debit; Retained Earnings: $340,000 credit

Accumulated OCI: $33,000 debit; Retained Earnings: $340,000 credit

Accumulated OCI: $6,750 debit; Retained Earnings: $380,000 credit

Accumulated OCI: $29,250 debit; Retained Earnings: $350,000 credit