For the year ended December 31, 2012, Transformers Inc. reported the following:
Net income $120,000
Preferred dividends declared 20,000
Common dividend declared 4,000
Unrealized holding loss, net of tax 2,000
Retained earnings, beginning balance 160,000
Common stock 80,000
Accumulated Other Comprehensive Income,?Beginning Balance 10,000
What would Transformers report as the ending balance of Retained Earnings?
A) $256,000
B) $254,000
C) $266,000
D) $278,000