On December 15, 2017, the board of directors of Lomas Corporation declared a cash dividend, payable on January 8, 2018 of $0.80 per share on the 2,000,000 common shares outstanding. The accounting period ends December 31. Because of this action, on December 15, 2017, Lomas Corporation should:

A. decrease retained earnings $1.6 million and increase liabilities by $1.6 million.

B. increase contributed capital $1.6 million and decrease liabilities $1.6 million.

C. make no journal entry because the event had no effect on the corporation's financial position until 2018.

D. decrease retained earnings $1.6 million and increase contributed capital $1.6 million.

E. decrease cash $1.6 million and decrease retained earnings $1.6 million.