Calculate the Difference: 74 minus 38 Using Vertical Subtraction

$\begin{aligned} &74 \\ -& \\ &38 \\ &\underline{\phantom{776}} & \\ \end{aligned}$

To solve this problem, we'll use vertical subtraction:

• Step 1: Set up the subtraction vertically, ensuring the digits align properly. Write 74 above 38, with a subtraction line underneath.
• Step 2: Subtract the units column first. We have $4 - 8$ which cannot be done directly since 4 is smaller than 8.
• Step 3: Borrow (regroup) from the tens column, converting 74 into 60 and 14. This is achieved by reducing 74 to 6 tens (60) and adding 10 to the 4 units to make it 14.
• Step 4: Now, subtract the units: $14 - 8 = 6$.
• Step 5: Next, subtract the tens column: $6 - 3 = 3$.
• Step 6: Combine the results of the tens and units: $36$.

Therefore, the solution to the problem is $36$, which corresponds to choice 4.