Chapter 18, Problem 18.7P

(1)

To determine

Stockholders’ equity:

The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Therefore, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders.

To describe: The purpose of statement of shareholder’s equity.

(2)

To determine

To explain: The accounting treatment for Incorporation C’s share buyback.

(3)

To determine

To reconstruct: The journal entry to record the buyback.

(4)

To determine

To describe: Comprehensive income and other comprehensive income.

(5)

To determine

To describe: The cause for the change in Incorporation C’s comprehensive income for the given period.

To determine

To show: The amount which is reported by Incorporation C as accumulated other comprehensive loss in its January 23, 2016 balance sheet.