True Technologies Ltd$.$ has total assets of $$2,125,000,$ total liabilities of $$175,000,$ the common share $$1,200,000$ and the

retained earnings balance is $$750,000.$ The number of common shares is $100,000$ with a market value of $$8$ per share. What would be

the effect on common shares if a cash dividend of $$0\mathrm{.}50$ was declared?

The balance in the Common Shares account would decrease by $$50,000.$

The number of common shares would increase by $50,000.$

There would be no impact on common shares.

The balance in the Common Shares account would increase by $$50,000.$