Harping Corporation declared an $800,000 dividend, $200,000 of which was liquidating. How would this distribution affect Retained Earnings and Additional Paid-in Capital, respectively?
(Answer is shown with Retained Earning listed first, Additional Paid-in Capital listed second. )
a) No effect $800,000 Decrease
b) $800,000 Decrease No effect
c) $600,000 Decrease $200,000 Decrease
d) Noeffect No effect