At December 31, 2020, UMC's balance sheet reported the following shareholders' equity:

($ in millions)

Common stock, $1 par 200 million

Paid-in capital in excess of par 800 million

Retained earnings 956 million

Treasury stock (4 million shares at cost) (25) million

Total shareholders' equity $1931 million

The Company decided to retire the 4 million treasury shares on December 31, 2020. The effect of the retirement of treasury shares on retained earnings is that

A. Retained earnings increases.

B.Retained earnings does not change.

C. Retained earnings decreases.

D. Total assets decrease.