Reduce the fraction 1/4 to its lowest expression by extracting and canceling 4.
Convert 1 to the fraction 2/2.
Since 2/2 and 1/2 have the same denominator, subtract their numerators to subtract them.
Subtract 1 from 2 to get 1.
Convert 1/2 and 1/8 to fractions with denominator 8.
Since 4/8 and 1/2 have the same denominator, subtract their numerators to subtract them.
Subtract 1 from 4 to get 3.