The KatyDid Co. is paying a $1.25 per share dividend today. There are 120,000 shares outstanding with a par value of $1.00 per share. As a result of this dividend, the:
A. retained earnings will decrease by $150,000.
B. retained earnings will decrease by $120,000.
C. common stock account will decrease by $150,000.
D. common stock account will decrease by $120,000.
E. capital in excess of par value account will decrease by $120,000.