Which one of the following transactions would affect retained earnings but not additional paid-in capital? A. Decrease in the value of an available-for-sale investment. B. Declaration oi a small stock dividend OC. Impairment of a long-term asset Purchase of treasury stock using the cost method Fact Pattern: Royce Company had the following transactions during the fiscal year ended December 31. Year 2 Accounts receivable decreased from $115.000 on Sold a truck with a net carrying amount of December 31 Year 1 to $100.000 on December 31 $7.000 for 35,000 cash reporting a loss of Year 2. $2 000 Royce's board of directors declared dividends on Paid interest to bondholders of $780.000 December 31 Year 2 of $ 05 per share on the The cash balance was $ 106,000 on December 2.8 million shares outstanding, payable to 31. Year 1, and $284 000 on December 31. shareholders of record on January 31 Year 3 The Year 2 company did not declare or pay dividends for fiscal Year 1 . Royce Company uses the direct method to prepare its statement of cash flows at December 31. Year 2. The interest paid to bondholders is reported in the Financing section, as a use or outflow of cash B Debt section as a use or outflow of cash C Investing section, as a use or outflow of cash D. Operating section as a use of ourflow of cash