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 on July 31, the end of the current year:

Line Item Description	Amount
Common Stock, $10 par	$300,000
Paid-In Capital from Sale of Treasury Stock-Common	22,600
Paid-In Capital in Excess of Par-Common Stock	90,000
Paid-In Capital in Excess of Par-Preferred Stock	93,000
Preferred 4% Stock, $50 par	1,550,000
Retained Earnings	2,507,800
Treasury Stock-Common	58,300

Stock shares authorized are: preferred stock, 50,000 shares; common stock, 200,000 shares. There are 5,300 shares of common stock held as treasury stock.

Prepare the "Stockholders' Equity" section of the balance sheet as of July 31, the end of the current year using Method 1 of Exhibit 10.

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Specialty Auto Racing Inc. Stockholders' Equity July 31, 20XX