Chapter 16, Problem 7QS

To determine

Concept Introduction:

Purchase and sales of fixed assets:

Purchase of fixed assets means acquiring of fixed assets like equipment, machinery, land, and building and as per the rules or guidelines the depreciation is charged on them. The book value of the fixed assets decreases when the depreciation is charged on them. The depreciation expense is added to accumulated depreciation account.
The sale of fixed assets means after sometime the assets are sold. The gain of loss is calculated by calculating the difference between book value and sales price.
If sale price is more than book value, the result is gain. And if book value is more than sales prices, the result is loss.

To compute:

Cash received from the sale of furniture