On December 31, xxx1, the Retained Earnings account balance before the year-end closing process was $30,000. The company had an income of $12,000. In the same date, the Board of Directors approved a restriction in Retained Earnings of $10,000 to be used for the construction of an expansion in the facilities. The company has 10,000 common stocks outstanding and $18,000 in the account balance of PIC in Excess of Par. (4 points) 23. When the company restricted the Retained Earnings, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Decrease Cash and decrease Retained Earnings by $10,000. The cash flow will be affected by $10,000. b) Decrease PIC in Excess of Par Value and increase Appropriation of Retained Earnings by $10,000. c) Decrease Retained Earnings and increase Appropriation of Retained Earnings by $10,000. You MUST show your calculations