Sue Shells, Incorporated pays back $$200,000$ on a loan it had obtained earlier from a bank. What is the effect of this transaction?

Multiple Choice

Assets decrease by $$200,000$; liabilities and stockholders' equity are both unchanged.

Assets decrease by $$200,000,$ liabilities decrease by $$200,000,$ and stockholders' equity is unchanged.

Assets decrease by $$200,000$ and liabilities increase by $$200,000.$

Assets decrease by $$200,000,$ liabilities are unchanged, and stockholders' equity decreases by $$200,000.$