IBM recently redefined its strategy to focus the company on cloud computing and artificial intelligence. IBM employs over 345,000 people across more than 175 countries. Assume a recent statement of cash flows contained the following information (in millions):

Required:
1. Prepare the journal entry to record the repurchase of common stock in Year 2.
2. Assume that IBM resold some of the treasury stock. The shares were originally purchased for $8 million and were resold for $9 million. Prepare the journal entry to record the sale of the treasury shares.

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Cash flows from financing activities: Repurchases of common stock Year 3 Year 2 (45,000) (22,860) Year 1 -0-