Reporting and Interpreting Shareholders' Equity 64 4 P11-11 irlines Analyzing the Repurchase of Shares and Retained Earnings (AP11-7) The following information is extracted from the statements of financial position o All amounts are in thousands of Canadian dollars. December 31, 2015 December 31, 2014 Shareholders' Equity Share capital Retained earnings Other components Total shareholders' equity $ 582,796 1,292,581 $ 603,287 1,102,300 71,915 $1,777.502 84,626 $1959,93 Net earnings for the year ended December 31, 2015, is $367,530 WestJet reported the following information in the notes to its 2015 financial statements: During the year ended December 31, 2015, the Corporation purchased and cancelled a total of 4,719,690 shares (December 31, 2014-1,435,150) for total consideration of $123,813 (December 31, 2014-$39,431). The average book value of the shares repurchased was $4.73 per share (December 31, 2014-$4.70) and was charged to share capital. The excess of the market price over the average book value, including transaction costs, was $101,489 (December 31, 2014- $32,680) and was charged to retained earnings Required: 1. Prepare the journal entry to record the share repurchase transaction. 2. Why do you think WestJet decided to repurchase the shares? Explain. 3. Did WestJet declare any dividends during fiscal year 2015? If so, com pute the amount of divide declared by the company