Hercules manufacturings retained earnings at december 31

Question

At December 31, 2014, the accounting records of Hercules Manufacturing, Inc. contain the following items:

11. Required information
Refer to the information above. If Retained Earnings at December 31, 2014, is $100,000, Equipment is carried in Hercules Manufacturing, Inc. accounting records at:
$42,000.
$58,000.
$43,500.
$345,000.

12. Required information
Refer to the information above. 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, 2014, amounts to:
$533,000.
$345,000.
$198,000.
$356,000.