Okay, we are tasked with adding 7854 and 1027. Let's begin!

Step 1: We'll start by adding the digits 4 & 7 in column 1 and get 11.
We'll write down the last digit 1 and carry the 1 to the next column.

Step 2: We'll start by adding the digits 5 & 2 in column 2 and get 8.

Step 3: We'll start by adding the digits 8 & 0 in column 3 and get 8.

Step 4: We'll start by adding the digits 7 & 1 in column 4 and get 8.

So, 7854 + 1027 = 8881.

