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Question - 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. Determine the Hercules Manufacturing's Retained Earnings at December 31, Year 1?
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