6. Bob is an attorney and sells various household goods from his home. He uses his basement to store the goods and keeps his business records in the basement as well. In 2018, Bob sold $65,000 worth of merchandise. His cost of goods sold was $47,000 and his advertising expense was $7,500. The annual costs for the upkeep of the house were $22,000. His mortgage interest expense was $7,000 and the depreciation on the house was $10,000. His annual real estate tax was $7,500.Bob has no other state and local tax expense for the year. Bobs house is 3,000 square feet and his basement is 450 square feet. Did Bob recognize any taxable income in 2018 from his business? If so, how much? If not, how much expense may Bob carry forward to next year? Should Bob elect to use the simplified method in computing his deductions?