Refer to the facts for Drayton Inc. presented in problem P13A-42.

Problem P13A-42.

Drayton Inc. was incorporated under provincial legislation with a December 31 year-end. The company has a single class of shares. As at December 31, 2020, it had 200,000 shares issued and outstanding. These shares had a book value of $5,000,000 on the balance sheet.

During 2021, Drayton repurchased 10% of the issued shares from one of the minority shareholders at a cost of $30 per share. The company held these in treasury and later found a buyer for half of these shares at $35. The other half were sold at $28 to another investor.

Required:

Assume that Drayton follows the guidance in ASPE pertaining to accounting for equity transactions. Record the share transactions using the alternative two-transaction method for treasury shares.