Jackson Corporation prepared the following book income statement for its year ended December 31, 2017: Sales Minus: Cost of goods sold Gross profit $950,000 (450,000) $500,000 Plus Dividends received on Invest Corporation stock S 3,000 30,000 Gain on sale of Invest Corporation st Total dividends and gain 33,000 $ 59,500 22,000 105,500 70,000 Minus: Depreciation ($7,500 +$52,000) Bad debt expense Other operating expenses s on sale of Equipment 1 LOs Total expenses and loss Net income per books before taxes Minus: Federal income tax expense Net income per books (257,000) $276,000 (90,000) $186,000 Information on equipment depreciation and sale: Equipment 1: Acquired March 3, 2015 for $180,000 For books: 12-year life; straight-line depreciation Sold February 17, 2017 for $80,000 S 80,000 Sales price Cost $180,000 S 7,500 15,000 7,500 Minus Depreciation for 2015 ( year) Depreciation for 2016 ($180,000/12) Depreciation for 2017 ( year) Total book depreciation (30,000) Book value at time of sale (150,000) $(70,000) k loss on sale of Equipment 1 For tax: Seven-year MACRS property for which the corporation made no Sec. 179 election in the acquisition year and elected out of bonus depreciation