Ouestion 2 (Accounting for share redemption): (14 marks) Westco Company had the following shareholders' equity accounts on January 1, 2020: Share Capital - Ordinary, 1,000,000 shares issued and outstanding $1,000,000 Retained Profits 600,000 During 2020, Westco redeemed 40,000 ordinary shares at $1.5 per share and issued 30,000 new ordinary shares at $1.4 per share to finance the redemption. The difference was paid out of distributable profits. Westco was listed on the Hong Kong Stock Exchange since 2002. Required: a. Prepare the appropriate journal entries to record the above transaction on Westco's books. Show calculations. (5 marks) b. According to the Hong Kong Companies Ordinance (2014), for publicly listed companies, share redemption can be made from one of the three sources. What are the three sources? Discuss the pros and cons of each of these sources in terms of their effects on financial statements and shareholders' interests. ( 9 marks)