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In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury

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In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2017, UMC's balance sheet reported the following shareholders' equity ($ in millions) $ 195 975 Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (4 million shares at cost) Total shareholders' equity 996 (33) 52.133 Required: a. Identify the type of accounting change this decision represents. b. Prepare the journal entry to effect the reclassification of treasury shares as retired shares. Complete this question by entering your answers in the tabs below. Required A Required B Identify the type of accounting change this decision represents. This is a Required B > change in accounting estimate change in accounting method change in accounting principle change in reporting entry unissued shares. As part of the change, treasury shares held were reclassified as retired stock. At December 31, 2017. UMC's! sheet reported the following shareholders' equity millions Common stock, $1 par Paid-in capital-excess of par Retained earnings Treasury stock (4 million shares at cost) Total shareholders' equity 996 $2,133 Required: a. Identify the type of accounting change this decision represents. b. Prepare the journal entry to effect the reclassification of treasury shares as retired shares. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry to effect the reclassification of treasury shares as retired shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i... 10,000,000 sho entered as 10).) View transaction list Record the entry to reclassify treasury shares as retired shares

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