Saddleback Company paid off $45,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

a.Assets, $45,000 increase; equity, $45,000 increase.

b.Assets, $45,000 decrease; liabilities, $45,000 decrease.

c.Assets, $45,000 decrease; liabilities, $45,000 increase.

d.Liabilities, $45,000 decrease; equity, $45,000 increase.

e.Assets, $45,000 decrease; equity $45,000 decrease.