1. ABC Inc. owns 75% of XYZ Co. The subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and noncontrolling interest balances on the parent company's consolidated balance sheet?

   	a.	Decreases both the consolidated retained earnings and the noncontrolling interest balances.
   	b.	No effect on either retained earnings or noncontrolling interest.
   	c.	No effect on consolidated retained earnings, but decreases noncontrolling interest.
   	d.	Decreases retained earnings, but no impact on noncontrolling interest.