3. Joseph Cohen owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 155 Main Street, Long Beach, CA 90532. Its income and associated expenses for the year ending December 31, 2018, are the following: Gross Income $ 405,000 Less: Cost of Goods Sold 1212,000) Gross Profit 193,000 Automobile Expense (5,123) Depreciation Expense (21,484) Office Expense (10,860) Supplies Expense (9,672) Payroll tax Expense (14,566) Meals Expense (4,000) Entertainment Expense (6,000) Utilities Expense (4,112) Salaries and Wages Expense (98,000) Property tax Expense (3,198) Total Expense (165,015) Net Income/(Loss) $ 27,985 On January 1, 2018, Story Books purchased a new delivery van for $60,000. The van's weight does not exceed 6,000 pounds. It elected to take a bonus depreciation on the new delivery van. On January 1, 2017, it purchased bookcases (7year property) for $18,000, and sofas (5-year property) for $8,000. In 2017, bonus depreciation of $9,000 and $4,000 were taken on the bookcases and furniture, respectively. It elected to use MACRS (half- year convention), which results in $2,204 and $1,280 depreciation expenses for the bookcases and sofas, respectively, in 2018