Other financial data for the year ended December 31, 2020: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2022. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Reese's December 31, 2020 balance sheet, The ending retained earnings balance is:

Answers:	A. $5,309,000.
	B. $5,870,000.
	C. $3,490,000.
	D. $5,394,000.

Please explain how you figured out the answer. Thank you!

Question 9 0 out of 10 points Reese Corp. Trial Balance December 31, 2020 - Cr. S Dr. 875,000 2.695.000 2.085.000 8.269,000 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Accounts payable and accrued liabilities Income taxes payable Deferred income tax liability Common stock Additional paid-in capital Retained earings, 1/1/20 Net sales and other revenues Costs and expenses Income tax expense $ 1,761,000 654.000 85,000 2,350,000 3.680.000 3.490.000 13,560,000 11.180.000 476.000 $25.580.000 $25.580.000 Other financial data for the year ended December 31, 2020: Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2022. During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Reese's December 31, 2020 balance sheet, The ending retained earnings balance is Answers: A. $5,309,000. B. $5,870,000. C. $3,490,000 D. $5,394,000