Question

Question text

For the year ended December 31, 2020, Transformers Inc. reported the following:


Net income $200,000
Preferred dividends declared 40,000
Unrealized holding loss, net of tax 2,000
Gain on foreign currency exchange, net of tax 5,000
Retained earnings 400,000
Accumulated Other Comprehensive Income,
Beginning Balance 20,000


What would Transformers report as its ending balance of Accumulated Other Comprehensive Income?

Select one:

a. $23,000

b. $18,000

c. $220,000

d. $20,000

please explain how to solve problem. thank you

Answer 1

Calculate ending balance of accumulated other comprehensive income

Beginning balance	20000
Unrealized holding loss, net of tax	-2000
Gain on foreign currency exchange, net of tax	5000
Ending balance	23000

So answer is a) $23000