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 ther 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 Lizzie's college expenses (balance of S35,000) Neither Joe nor Jessie is blind or over age 65, and Based on their estimates, determine Joe and Jessie's AI and taxable income (including Jessie's business income on Schedule C), as well as any credits they may be entitled to for Lizzie's education) for the vear and complete pages 1 and 2 of Form 1040 (as well as s that 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 lan to file as married joint. forms - vou may omit the SE form). Assume Income Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds S 124,100 18.400 1.650 727 Expenditures Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Securty tax withheld trom Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing c Travel and lodging for craft shows Meals during craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuitiorn Lizzie's room and board at college Cash contribuions to Red CroSS $ 13,700 6.400 /482 6,200 310 1,150 14.000 2.300 1,690 2.400 4 260 145 2,230 670 1,615 5.780 3.200 12,620