d. When it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. QUESTION 9 The balance in retained earnings at December 31,2017 was $1,720,000 and at December 31,2018 was $1,260,000. Net income for 2018 was $1,000,000. A stock dividend was declared and distributed which increased common stock $400,000 and additonal paid-in capital $280,000. A cash dividend was declared and paid. The amount of the cash dividend was a. $580,000. b. $540,000. c. $960,000. d. $780,000. QUESTION 10 On January 1, 2018, JJ Corporation signed a six-year noncancelable lease for equipment. The terms of the lease called for JJ to make annual payments of $180,000 at the beginning of each year for six years with title passing to J at the end of this period. The equipment has an estimated useful life of 8 years and no salvage value. JJ uses the straight-line method of depreciation for all of its fixed assets. JJ accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $750,578 at an effective interest rate of 9.5%. Click Save and Submit to save and submit. Click Save All Answers to save all answers