1. A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost.

• What effect does this transaction have on revenue or expense of the period?
• What effect does it have on stockholders equity?
• What is the effect on the corporations revenue of the period?
• What is the effect on stockholders equity?

1. Indicate how prior period adjustments would be reported on the financial statements presented only for the current period.