On two previous occasions, the management of Dennison and Company, Inc., repurchased some of its common shares. Between buyback transactions, the corporation issued common shares under its management incentive plan. Shown below is shareholders’ equity following these share transactions, as reported by two different methods of accounting for reacquired shares. 

Required: 

1. Infer from the presentation which method of accounting for reacquired shares is represented by each of the two columns. 2. Explain why presentation formats are different and why some account balances are different for the two methods. 1. Infer from the presentation which method of accounting for reacquired shares is represented by each of the two columns. 

2. Explain why presentation formats are different and why some account balances are different for the two methods.

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($ in millions) Method A Method B Shareholders' equity Paid-in capital: Preferred stock, $10 par Common stock, $1 par Additional paid-in capital Retained earnings Less: Treasury stock $ 150 $ 150 200 197 1,204 1,201 2,994 2,979 (21) Total shareholders' equity $4,527 $4,527