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:

1	Common Stock, $36 par	$10,314,000.00
2	Paid-In Capital from Sale of Treasury Stock-Common	355,000.00
3	Paid-In Capital in Excess of Par-Common Stock	2,865,000.00
4	Paid-In Capital in Excess of Par-Preferred Stock	291,900.00
5	Preferred 1% Stock, $150 par	7,297,500.00
6	Retained Earnings	72,106,900.00
7	Treasury Stock-Common	880,000.00

Fifty thousand shares of preferred and 300,000 shares of common stock are authorized. There are 20,000 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 8