67. Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business con- sists of making craft items for sale at craft shows that are held periodically at vari- ous locations. Jessie spends considerable time and effort on her craft business and it has been consistently profitable over the years. Joe and Jessie pay interest on a per- sonal loan to pay for Lizzie's college expenses (balance of $35,000). Based on their estimates, determine Joe and Jessie's AGI and complete page 1 of Form 1040. As- sume that the employer portion of the selt employment tax on Jessie's income is dividual For AGI Deductions $831. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income v Joe's salary $124,100 Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Income from renting out their personal residence 18,400 1,650 716 920 NatG for 10 days during local golf tournament Expenditures: Social Security tax withheld from Joe's wages (From AGT) 7,482 Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie (ATCican oppertu5,780 interest on loans to pay Lizzie's tuition Lizzie's room and board at college Clning fees and advertising expense associated 145 7 2,230 -1.662 ( renting their residence during ocal golf tournament