Williams Industries has outstanding 30 million common shares 20
Williams Industries has outstanding 30 million common shares, 20 million Class A shares, and 20 million Class B shares. Williams has the right but not the obligation to repurchase the Class A shares if a change in ownership of the voting common shares causes J. P. Williams, founder and CEO, to have less than 50% ownership. Williams has the unconditional obligation to repurchase the Class B shares upon the death of J. P. Williams.

Required:
Which, if any, of the shares should be reported in Williams' balance sheet as liabilities? Explain.

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