JA 70. Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University Joe works as a design enginer for a manufacturing firm while Jessie runs a craft busines from their home Jessi'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 pay interest on a personal loan s (balance of $35,000). Based on their estimates, determine Joe and Jessie's AGI and complete page 1 of Form 1040. Assume that the 2016 rules apply for purposes of the qualified education deduction and the employer portion of the self employment tax on Jessie's income is $808. Joe and Jessie have summarized the income and expenses they expect to report this year as follows Page 6-49 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from manicipal bond funds Income from renting out their personal residence for 10 days during $124.100 18.400 1,650 727 920 800 local golf tournament Expendstures Social Security tax withheld from Joe's wages Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Meals daring craft shows Self-employment tax on Jessie's craft income College tuition pad for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cleaning fees and advertising expense associated with reoting their 7.482 4.260 145 ,230 670 1.615 5,780 3.200 12,620 600