Problem 18-3 (Static) Reacquired shares-comparison of retired shares and treasury shares; financial statement effects [LO18-5] National Supply's shareholders' equity included the following accounts at December 31, 2023 : Required: ls 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2024 Reacquired 300,000 shares at $8 per share. February 17, 2025 Reacquired 300,000 shares at $5.50 per share. November 9, 2026 Sold 200,000 shares at \$7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31,2026 , assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was \$14 million in 2024, \$15 million in 2025, and \$16 million in 2026. No dividends were paid during the three-year period. Problem 18-3 (Static) Reacquired shares-comparison of retired shares and treasury shares; financial statement effects [LO18-5] National Supply's shareholders' equity included the following accounts at December 31, 2023 : Required: ls 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2024 Reacquired 300,000 shares at $8 per share. February 17, 2025 Reacquired 300,000 shares at $5.50 per share. November 9, 2026 Sold 200,000 shares at \$7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31,2026 , assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was \$14 million in 2024, \$15 million in 2025, and \$16 million in 2026. No dividends were paid during the three-year period