Early retirement of outstanding long-term debt. REQUIRED:

a. Refer to Figure 13-2 in the text, and classify each transaction in one of the following categories. (1) Exchanges with stockholders (2) Exchanges of liabilities and stockholders’ equity (3) Issues and payments of debt (4) Purchases, sales, and exchanges of assets (5) Operating transactions

b. Briefly explain why the transactions are considered increasingly operating (or decreasingly capital) as the categories move from 1 to