From the data given below, calculate the Retained Earnings balance as of December 31, 2009.

Retained Earnings, December 31, 2008 $500,000

Cost of equipment purchased during 2009 200,000

Net Income for the year ended December 31, 2009 45,000

Dividends declared and paid in 2009 70,000

Decrease in Supplies in 2009 25,000

Increase in Equipment in 2009 42,000