The balance sheet of Holmes Services included the following shareholders equity section at December 31, 2021: ($ in millions)

	($ in millions)
Common stock ($1 par value, authorized 100 million shares, issued and outstanding 90 million shares)		$	90
Paid-in capital excess of par			540
Retained earnings			280
Total shareholders equity		$	910

On January 5, 2022, Holmes purchased 1 million treasury shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital excess of par and retained earnings accounts are:

	Paid-in capital excess of par				Retained earnings
a.	$	540			$	280
b.	$	540			$	272
c.	$	534			$	278
d.	$	532			$	280

Option C is incorrect.