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.