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 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 $35,000).

Neither Joe nor Jessie is blond or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $841. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income:
Joe's Salary	$130,100
Jessie's Craft Sales	18,500
Interest from certificate of deposit	1,750
Interest from Treasury bond funds	736
Interest from municipal bond funds	940
Expenditures:
Federal Income tax withheld from Joe's Wages	$13,700
State income tax withheld from Joe's Wages	6,600
Social Security tax withheld from Joe's Wages	7,522
Real Estate Taxes on residence	6,400
Automobile licenses (based on weight)	330
State sales tax paid	1,250
Home Mortgage Interest	17,000
Interest on Masterdebt credit card	2,500
Medical expenses (unreimbursed)	1,790
Joe's employee expenses (unreimbursed)	2,600
Cost of Jessie's craft supplies	5,360
Postage for mailing crafts	155
Travel and lodging for craft shows	3,330
Self-employment tax on Jessie's craft income	1,682
College Tuition paid for Lizzie	5,980
Interest on loans to pay Lizzie's tuition	3,400
Lizzie's room and board at college	12,820
Cash contributions to the Red Cross	575

a. Determine Joe and Jessie's AGI and taxable income for the year. (Round your intermediate calculations to the nearest whole dollar amount.)

Joe and Jessie's AGI	$
Joe and Jessie's Taxable Income	$