Treasury stock is a contra account with a debit balance in the stockholders' equity section of a company's balance sheet.

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This is because treasury stock represents shares of a company's own stock that have been bought back by the company and are no longer outstanding. Since it is a contra account, it is subtracted from the total stockholders' equity balance, which results in a lower total equity balance. As a contra account, it has a debit balance, which means it is recorded on the balance sheet as a deduction from total equity.

Treasury Stock Is a Contra Account with a Debit Balance