Ismail Bhd decided to repurchase 5% of its preferred shares and 10% of its ordinary shares under the company's buyback scheme. At the date of the repurchase, the shareholders' equity of Ismail Bhd showed the following balances: Repurchase price at RM1.70 per share for preferred share and RM1.20 per share for ordinary shares. The company adopt treasury shares cost method for the repurchased shares. After repurchased, the company sells half of the treasury share (preferred shares) to public, price at RM 2.00 per share. After resell, full amount of treasury share (ordinary shares) will be cancel by the company. The remaining shares will available in the company for future purpose. Required: a) Give reasons why Ismail Bhd should buy its own shares. b) Prepare the journal for the share buy-back. (3 marks) c) Prepare the extraction of financial position on the equity section. (12 marks)