I'm not quite sure what your actual question is, but rental furnishings that are sold go on Form 4797.

If the  furnishings were used as a deduction (either because they are $200 or less or because they fell under the De Minimis election to deduct them), it would be Ordinary Income in Part 2.  If they were depreciated, they would be reported in Part 1 or 3, and you have depreciation recapture.