The Company has repurchased 1 million common shares. We'll consider two cases. For each, we'll look at the accounting under two scenarios: (a) the company is permanently retiring the shares and (b) the company is not retiring the shares and treating them as treasury stock.

• Case 1: Company repurchases 1 million common shares at $7.00.

• Case 2: Company repurchases 1 million common shares at $13.00