Joe (age 30) and Jill (age 27) Smith have brought you the following information regarding their income and expenses for the year. They are not sure which of these items must be used to calculate taxable income: Income: Joe's salary (sales) $27,200 Jill's wages (accounting clerk) $18,200 Insurance reimbursement (for repairs from an auto accident) $ 500 Gift from Uncle Mark $ 2,000 Interest income from Lodge State Bank $ 640 Federal income taxes withheld: Joe's salary $ 3,300 Jill's wages $ 1,850 Expenses: Client entertainment and meals $ 2,300 Professional dues $ 800 Business travel (includes $500 of meals) $ 1,500 Business journal subscriptions $ 300 Country club annual dues $ 1,200 Itemized deductions: Home mortgage interest $ 8,400 State income taxes $ 1,900 (Assume the couple elects to deduct state income taxes in 2010.) The Smiths support Joe's parents, Nick and Jessica (social security numbers: 123-45-6777 and 144-66-3838, respectively) Smith, who live in their own home. Joe and Jill live at 1919 Park Ave, Bluebell, ME 04104, and their social security numbers are 343-44-4648 (Joe) and 123-34-4448 (Jill). Joe's parents meet both the support test and the gross income test. 1.Complete Schedule A. 2.Complete Form 2106-EZ.