At December $31,$ Year $1,$ the accounting records of Hercules Manufacturing, Incorporated contain the following items:

Accounts Payable $ $12,000$ Accounts Receivable $ $30,000$

Land $90,000$ Cash $7,000$

Building $250,000$ Equipment $?$

Notes Payable $135,000$ Capital Stock $188,000$

Retained Earnings $?$

Assume that the Equipment shown above was acquired by the business five years ago and has a book value of $$156,000,$ but has a current appraised value of $$200,000.$ Hercules Manufacturing's Retained Earnings at December $31,$ Year $1,$ amounts to: