The sale of the business is based on your investment in it. That is how you arrive at the basis for the sale. If you have zero dollars tied up in the business (as in any money that you put into it you have already taken out) then the sale of the business is 100% capital gains.
For your purposes you can enter the sale in the same location where you entered the sale of the furniture and equipment from earlier, on your schedule C. Entering it there will carry the necessary amounts over to schedule D and form 4797 (if required).
Enter the date of purchase as the date that you started the business and the basis as any money you still had tied up in the business at the time of sale. The goodwill is just a part of the business sale. You should enter the purchase price as the total amount that you received less the $5000 that you already used for the furniture and whatnot.
@muchica
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