Answer:
Cruz Inc.
Cash inflow from the sale of Furniture:
Difference in the accumulated depreciation account is transferred to Sale of Furniture:
Accumulated Depreciation- Furniture
Opening Balance - $6,200
Plus Depreciation Expense - $25,600
Less Credit Balance - $11,300
Balance transferred to sale of furniture = $20,500
Sales of Furniture Account
Debit: Furniture Account (book value) = $56,600
Credit: Accumulated Depreciation = $20,500
Credit: Cash inflow = $36,100
Step-by-step explanation:
The cash inflow is the difference between the book value of the furniture sold and its attributable accumulated depreciation.
The attributable accumulated depreciation is the difference between opening accumulated depreciation and depreciation expenses less closing accumulated depreciation. This difference represents the amount of accumulated depreciation transferred out, as a result of the sale.