HP is an international organization that deals with the buying and selling of laptops. Mr. Shahnawaz is dealing with the franchise of Hp Ltd in the territory of Sialkot. On 1st June 2017, Mr. Shahnawaz bought Furniture for the decor of the showroom with a voucher cost of $4500, carrying cost of $300, and installation cost of $200. Mr. Shahnawaz has some creative thoughts and decided to change the whole structure of the showroom, so he sold the furniture at 31st of December 2020 @ $ 3500. While buying the furniture, the seller predicts the asset will last for the next 10 years.

Mr. Shahnawaz is confused regarding his profit or loss on the sale of furniture, so he hired you for this project. So, now you are supposed to calculate the profit or loss on the sale of furniture and show the book value in tabulated format (Furniture Account) through the diminishing balance method.

rate of depreciation is 10%