Tease allocate tions and journal Question 15 At December 31, 2020, UMC's balance sheet reported the following shareholders' equity: Common stock, $1 par Paid-in capital in excess of par Retained earnings Treasury stock (4 million shares at cost) Total shareholders' equity ($ in millions) $200 800 956 (25) $1.931 3 The Company decided to retire the 4 million treasury shares on December 31, 2020. The effect of the retirement of treasur shares on retained earnings is that Retained earnings increases. O Retained earnings does not change. None of the other answers is correct. O Retained earnings decreases.