The Borio Company had an asset with a $7 book value and a $8 market value: it decided to distribute the asset as a property dividend. Journal entries were made to adjust the property to market value and declare the dividend. Indicate the combined effect of the adjustment and the declaration on the Total Assets and Retained Earnings, respectively:

Select one:

a.

Decrease, Decrease

b.

No Effect, Decrease

c.

Increase, Decrease

d.

No Effect, Increase

e.

Decrease, Increase