In a balance sheet, Does the Treasury Stock have to be subtracted from retained earnings?

Why is it so, because I am facing a problem and I don't really understand it in my financial accounting class?

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Originally Posted by Cynthia Kunato

In a balance sheet, Does the Treasury Stock have to be subtracted from retained earnings?

Why is it so, because i am facing a problem and i don't really understand it in my financial accounting class?

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Yes,
Treasury stock is usually a repurchase of co. stock. Because a co. asset-cash- is used, the result is a reduction of shareholder equity.