(a) How should Mask account for the purchase and sale of the treasury stock, and how should the treasury stock be presented in the balance sheet at December 31, 2017? (b) How should Mask account for the stock dividend, and how would it affect the stockholders' equity at December 31, 2017? Nov 14, 2019 · When investors analyze a company's balance sheet, one item that warrants closer inspection is called minority interest. The minority interest section refers to the equity that minority shareholders hold in a company's subsidiaries, which you'll often see when looking at holding companies. Treasury stock is stock reacquired by the issuing corporation. Treasury stock does not confer any ownership rights and does not receive dividends. Treasury stock is a contra-equity account and reduces the balance of stockholder’s equity. Example of Stockholder’s Equity Section of the Balance Sheet Assets Stockholder's Equity In essence, the treasury shares are the same as unissued equity capital. They are not classified as an asset on the balance sheet, because assets should have probable future economic benefits. These shares simply reduce ordinary share capital. They are usually presented under the equity capital in balance sheet as a negative number.