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. For the first two months of this year, Joe worked as an employe for his previous employer. In March, Joe he worked for the remainder of the year. Jessie runs a craft business from their home but does not have a room in the her business. 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 er craft business nd it has been consistentlyprofitable over the years Joe and Jessie pay interest on a personal loan to pay for Lizzie's college expenses (balance of $35,000 Determine Joe and Jessie's AGI (show explained details of your work on the back of this page or attiched on a separate shet of paper) and complete page 1 of Form 1040. Assume that the 2016 rules apply for purposes of the qualified education expenses deduction and the employer portion of the self-employment tax on Jessie's income is $640. Joe and Jessie have summarized their income and expenses for the year as follows: Income: s 122,000 > .140 ,so Joc's salary Jessie's craft sales Interest from certificate of deposit Income from renting out their personal residence for 12 days during a PGA tournament to help pay Lizzie's college costs 18,500 1,650 10,000 19) Expenditures: 7,564 4,260 Social Security tax withheld from Joe's wages Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Paid to an assistant to help at craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Gleaning fees and advertising expense associated loor 2,230 670 1280 -122 , 17,600 10,000 500