1. **State the problem:** We need to find the result of subtracting 327 from 865. 2. **Write the subtraction:** $$865 - 327$$ 3. **Subtract the digits starting from the right:** - Units place: $5 - 7$ cannot be done directly, so we borrow 1 from the tens place. - Tens place after borrowing: $6$ becomes $5$. - Now units place: $15 - 7 = 8$ 4. **Subtract tens place:** $$\cancel{6}5 - 2 = 5 - 2 = 3$$ 5. **Subtract hundreds place:** $$8 - 3 = 5$$ 6. **Combine the results:** $$538$$ **Final answer:** $$865 - 327 = 538$$