The 12/31/2018 balance sheet of Despot Inc. included the following:

Common stock, 25 million shares at $20 par

$

500

million

Paid-in capitalexcess of par

3,000

million

Retained earnings

980

million

In January 2018, Despot recorded a transaction with this journal entry:

Cash

150

million

Common stock

100

million

Paid-in capitalexcess of par

50

million

In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts?

A) Decreased assets and liabilities.

B) Decreased assets and shareholders' equity.

C) Increased liabilities and decreased shareholders' equity.

D) None of these answer choices are correct