Total shareholders' equity equals total paid-in capital plus retained earnings, less which item?

1. Paid-in capital is the sum of share capital, share premiums, and paid-in capital from treasury share sales. 2. Retained earnings is added to paid-in capital. 3. Treasury shares are held by the company, not by outside owners, so their cost is deducted. 4. Total shareholders' equity = total paid-in capital + retained earnings − treasury shares. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §6.7 "Stockholders' Equity Section of the Balance Sheet", p.257_