Let x be the number of humans.

y be the number of horses.

Since there are 74 heads, we can form the equation:

x + y = 74

And since there are 196 legs, and we all know that a human has 2 legs and a horse has 4 legs, we can form the equation:

2x + 4y = 196

So, we can now solve for the value of x and y using the two equations.

x + y = 74

2x + 4y = 196

x + y = 74 can be transformed as y = 74 - x. We can substitute this to the value of y in the other equation. Therefore, we have:

2x + 4y = 196

2x + 4(74-x) = 196

2x + 296 - 4x = 196

2x - 4x = 196 - 296

-2x = -100

x = -100/-2

x = 50

From the value of x, we can get the value of y.

x + y = 74

(50) + y = 74

y = 74 - 50

y = 24

Therefore, there are 50 humans and 24 horses.

**- D.E.**