New Mexico, Inc Additional Information Provided by the Company Includes the Following:
Equipment

New Mexico, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:
New Mexico, Inc.
Comparative Bance Sheet
December 31,2019 and 2018 $\begin{array}{lllc}&2019& 2018 &\text { Increase (Decrease }\\\text { Cash } & \$ 42,000 & \$ 36,000 & \$ 6,000 \\\text { Accounts Receivable } & 62,000 & 70,000 & (8,000) \\\text { Merchandise Inventory } & 106,000 & 50,000 & 56,000 \\\text { PP\&E, net } & \underline{240,000} & \underline{180,000} & \underline{60,000} \\\text { Total Assets } & \$ 450,000 & \$ 336,000 & \$ 114,000\end{array}$
Additional information provided by the company includes the following:
Equipment costing $104,000 was purchased for cash.
Equipment with a net book value of $20,000 was sold for $28,000.
Depreciation Expense of $24,000 was recorded during the year.
Use the T-account format and evaluate the transactions affecting Property, Plant, and Equipment, net.