At December 31, Year 1, the accounting records of Hercules Manufacturing, Incorporated contain the following items: Accounts Payable \$12,000 Accounts Receivable \$30,000 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: $533,000. $198,000. $356,000. $345,000