A 70% owned subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and minority interest balances in the parent company’s consolidated...

A 70% owned subsidiary company declares and pays a cash dividend. What effect does the dividend have on the retained earnings and minority interest balances in the parent company’s consolidated balance sheet?

a. No effect on either retained earnings or minority interest

b. Decrease in both retained earnings and minority interest

c. A decrease in retained earnings and no effect on minority interest.

d. No effect on retained earnings and a decrease in minority interest.