Exercise 18-16 (Algo) Stock buyback; Reagan press announcement [LO18-5] The following excerpt is from an article reported in an online issue of Bloomberg. Reagan Motor Company (R) said it will repurchase $3.5 billion of its shares to reduce dilution from recent stock grants to executives. The par amount per share for Reagan's common stock is $0.01. Paid-in capital-excess of par is $7.09 per share on average. The market price was $24.5. Required: 1. Suppose Reagan reacquires 129.00 million shares through repurchase on the open market at $24.50 per share. Prepare the appropriate journal entry to record the purchase. Reagan considers the shares it buys back to be treasury stock. 2. Suppose Reagan considers the shares it buys back to be retired rather than treated as treasury stock. Prepare the appropriate Journal entry to record the purchase