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, $36 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,080,000

Paid-In Capital from Sale of Treasury Stock—Common. . . . . . . . . 340,000

Paid-In Capital in Excess of Par—Common Stock. . . . . . . . . . . . . . 420,000

Paid-In Capital in Excess of Par—Preferred Stock. . . . . . . . . . . . . . 384,000

Preferred 1% Stock, $150 par. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,684,000

Treasury Stock—Common . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,008,000

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

There are 24,000 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 Exhibit4.

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Telex Inc. Balance Sheet December 31,2014 Stockholders Equity Paid-in capital: Preferred 1096 stock, $50 par (2,000 shares authorized and issued)... . Excess of issue price over par.... Common stock, $20 par (50,000 shares authorized, . $100,000 10,000 110,000 45,000 shares issued) . Excess of issue price over par. . .. $900,000 . 190,000 1,090,000 2,000 From sale of treasury stock. . Total paid-in capital... $1,202,000 350,000 1,552,000 27,000 1,525,000 Retained earnings... otal Deduct treasury stock (600 shares at cost) Total stockholders' equity.······…