On July 1, 2016, Goode Company borrowed $180,000. The company signed a note payable with interest at 6 percent per year. The note and interest are due on December 31, 2016. On December 31, 2016, Goode paid $185,400 to settle the debt in full. Assuming no accruals for interest have been made during the year, transaction analysis of the $185,400 cash payment on December 31, 2016 should reflect which of the following?

a. A decrease in assets of $180,000, a decrease in stockholders' equity of $5,400, and a decrease in liabilities of $185,400.

b. A decrease in assets of $185,400 and a decrease in liabilities of $185,400.

c. A decrease in liabilities of $180,000, a decrease in stockholders' equity of $5,400 and a decrease in assets of $185,400.

d. A decrease in stockholders' equity of $180,000, a decrease in liabilities of $5,400, and a decrease in assets of $185,400.