Altria Group, Inc. reports the following footnote to its 2008 10-K. On March 28, 2008, Altria Group,

Altria Group, Inc. reports the following footnote to its 2008 10-K.

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On March 28, 2008, Altria Group, Inc. distributed all of its interest in Philip Morris International Inc. ("PMI") to Altria Group, Inc. stockholders of record as of the close of business on March 19, 2008, in a tax-free distribution. Altria Group, Inc. distributed one share of PMI common stock for every share of Altria Group, Inc. common stock outstanding as of the PMI Record Date. Following the PMI Distribution Date, Altria Group, Inc. does not own any shares of PMI stock. Altria Group, Inc. has reflected the results of PMI prior to the PMI Distribution Date as discontinued operations on the consolidated statements of earnings and the consolidated statements of cash flows for all periods presented. The assets and liabilities related to PMI were reclassified and reflected as discontinued operations on the consolidated balance sheet at December 31, 2007. The distribution resulted in a net decrease to Altria Group, Inc.'s total stockholders' equity of $14.4 billion on the PMI Distribution Date. a. Describe the accounting for a spin-off. b. What effects did this transaction have on Altria's balance sheet and income statement?