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 71,400 Preferred 4% Stock, $50 par 1,190,000 Retained Earnings 2,814,200 Treasury Stock-Common 44,000 One hundred thousand shares of preferred and 400,000 shares of common stock are authorized. There are 4,000 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.