A companys stockholders equity consisted of $7 par common stock, 200,000 shares authorized and 100,000 shares issued. The Paid- in capital in excess of par had a balance of $160,000. There were 2,000 shares held in treasury at a total cost of $16,000. If the total stockholders equity is $974,000, determine the balance of retained earnings.

a.$130,000

b.$128,000

c.$114,000

d.$860,000