Chapter 18, Problem 18.6E

To determine

Redeemable shares: Shares with redemption privilege have to be returned back to the corporation, under specified condition is known as redeemable shares. It may be redeemable either at the option of the shareholder or at the option of the corporation. Mandatorily redeemable shares have to be classified as liabilities.

To identify: The type of share which would be reported as liabilities in the balance sheet of W Industries.