2. The stockholders equity section of Peter Corporations balance sheet at December 31, 2014 is as follows:

Common stock ($10 par value); authorized 1,000,000 shares, issued and outstanding 900,000 shares $ 9,000,000 Additional paid-in-capital common stock $ 2,700,000 Retained Earnings $ 1,300,000 TOTAL STOCKHOLDERS EQUITY $13,000,000

(a) Prepare the journal entry for the buyback and resale, assuming that the Peter Corporation retires the shares. (b) Prepare the journal entry for the buyback and resale, assuming that Peter Corporation does not retire the shares