Treasury stock is reported within the balance sheet as

A) a long-term investment.
B) a short-term investment.
C) an account contra to retained earnings.
D) an account contra to owners' equity.

Treasury stock is considered as a contra account to owners' equity as it represents a reduction in the total amount of equity available to the shareholders. Therefore, it is reported within the shareholders' equity section of the balance sheet. Option A and B are not correct as treasury stock is not considered as an investment in other companies. Option C is close but not entirely accurate as retained earnings represent the net income earned by the company that is not distributed to the shareholders as dividends.