Prepare the Stockholders Equity section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 8

Specialty Auto Racing Inc
Stockholders' Equity
July 31, 20XX
Paid-In Capital:
Preferred 4% Stock, $50 Par (100,000 Shares Authorized, 29,400 Shares Issued)	$fill in the blank 2
Excess over Par	fill in the blank 4
Paid-in Capital, Preferred Stock		$fill in the blank 6
Common Stock, $10 Par (400,000 Shares Authorized, 76,000 Shares Issued)	$fill in the blank 8
Excess over Par	fill in the blank 10
Paid-in Capital, Common Stock		fill in the blank 12
From Sale of Treasury Stock		fill in the blank 14
Total Paid-In Capital			$fill in the blank 15
Retained Earnings			fill in the blank 17
Total			$fill in the blank 18
Treasury Stock (5,000 Shares at Cost)			fill in the blank 20
Total Stockholders' Equity			$fill in the blank 21

Stockholders' Equity Section of Balance Sheet Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: Common Stock, $10 par $760,000 Paid-In Capital from Sale of Treasury Stock-Common 57,300 Paid-In Capital in Excess of Par-Common Stock 228,000 Paid-In Capital in Excess of Par-Preferred Stock 88,200 Preferred 4% Stock, $50 par 1,470,000 Retained Earnings 3,176,300 Treasury Stock-Common 55,000 One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 5,000 shares of common stock held as treasury stock