.3 An analysis of the income statement and the balance sheet accounts of Holmes Export Co. on December 31, 2019 provides the following information:

Income Statement items:

Gain on sale of Plant Assets 12,000

Loss on sales of Marketable Securities 16,000

Analysis of Balance Sheet accounts:

Marketable Securities account:

Debit entries.. $78,000

Credit entries 62,000

Notes Receivable account:

Debit entries $55,000

Credit entries. 62,000

Plant and Equipment account:

Debit entries $170,000

Credit entries. 140,000

Debit entries to accumulated depreciation accounts. 100,000

Additional Information

1. Except as noted in 4 below, payments and proceeds relating to investing transactions were made in cash.
2. The marketable securities are not cash equivalents.
3. All notes receivable related to cash loan made to borrowers, not to receivables from customers.
4. Purchases of new equipment during the year ($170,000) were financed by paying $60,000 in cash and issuing a long term note payable for $110,000.

Debits to the accumulated depreciation accounts are made whenever depreciable plant assets are sold or retired. The book value of plant assets sold or retired during the year was $40,000 (140,000-100,000).