1. On January 1, Garrison Corporation had 1,090,000 shares of $9 par value common stock outstanding. On March 31, the company declared a 9% stock dividend. Market value of the stock was $11/share. As a result of this event,

a. Garrison's Paid-in Capital in Excess of Par Value account increased $196,200.

b. Garrison's total stockholders' equity was unaffected.

c. Garrison's Retained Earnings account decreased $1,079,100

d. dierect labor

2. The lessee has substantially all of the benefits and risks of ownership in a(n)

a. operating lease

b. operating lease and a capital lease

c. apartment lease

d. capital lease