The following accounting issues have arisen at Cooltouch Cotton, Inc.: 1. Corporations sometimes purchase their own stock. When asked why they do so, Cooltouch management responds that the stock is undervalued. What advantage would Cooltouch gain by buying and selling its own undervalued stock? 2. The treasurer of Cooltouch wants to report a large loss as an extraordinary item because: Cooltouch produced too much product and cannot sell it. Why do you think the trea- surer wants to report the loss as extraordinary? Would that be acceptable? 3. Cooltouch earned a significant profit in the year ended November 30, 20X2. because land that it held was purchased by the State of North Carolina for a new highway. The com- pany proposes to treat the sale of land as operating revenue. Why do you think Cooltouch is proposing this plan? Is this disclosure appropriate?