Case study 2: MAX SAOG's annual reports 2017 mentions about buyback of its own shares from the open market. The company was registered with a capital of OMR 100 million divided into ordinary shares of 200 baiza each. The company issued and paid up capital amounted to OMR 50 million. The company also had 6% 500,000 redeemable preference shares of OMR 2 each. From the annual report one can understand that the company was able to buyback 10 per cent of its shares outstanding. This was reflected in the equity through treasury stock account balance of OMR 20 million. The company also showed a balance of OMR 35 million in its retained earnings and OMR 55 million in legal and statutory reserves. Thereafter the company earned a profit of OMR 12.5 million in 2018 and OMR 10 million in 2019. The company in the meantime also proposed and paid dividends as follows: 2018: Paid 5% interim dividend in March and 10% final dividend approved in the same year but paid in the next year 2019: 15% final dividend approved in the beginning of year 2020. For the year 2018 the company reissued 20% of its repurchased shares at the rate of OMR 1.500 each in the month of May and the remaining was reissued in the month of October 2019 for OMR 0.600 each. Considering the above scenario answer the following questions: Questions for scenario 1: a. Do you think that giving millions of rials to repurchase their own shares has any impact on the company? (2 marks - Min 100 words) b. Provide the detailed accounting treatment that includes only the transactions related to treasury stock? (3 marks) c. Provide with all necessary calculations and accounting treatment with regards to dividends and prepare statement of retained earnings for the period 2017 - 2019