#4

Required Information [The following information applies to the questions displayed below] Joe and Jessle are married and have one dependent child, Lizzle. Lizzle is currently in college at State University. Joe works as a design engineet for a manufacturing firm, while Jessle runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000 ) and a personal loan to pay for Lizzle's college expenses (balance of $35,000). Nelther Joe nor Jessle is blind or over age 65, and they plan to file as married-joint Assume that the employer portion of the self-employment tax on Jessie's income is $680. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: a. Determine Joe and Jessle's AGl and taxable Income for the year. Note: Round your Intermedlate calculations to the nearest whole dollar amount