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. Jessies 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 Lizzies college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessies income is $850. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joes salary $ 131,000 Jessies craft sales 18,590 Interest from certificate of deposit 1,840 Interest from Treasury bond funds 754 Interest from municipal bond funds 958 Expenditures: Federal income tax withheld from Joes wages $ 13,700 State income tax withheld from Joes wages 6,780 Social Security tax withheld from Joes wages 7,558 Real estate taxes on residence 6,580 Automobile licenses (based on weight) 348 State sales tax paid 1,340 Home mortgage interest 17,900 Interest on Masterdebt credit card 2,680 Medical expenses (unreimbursed) 1,880 Joes employee expenses (unreimbursed) 2,780 Cost of Jessies craft supplies 6,350 Postage for mailing crafts 164 Travel and lodging for craft shows 2,420 Self-employment tax on Jessies craft income 1,700 College tuition paid for Lizzie 6,160 Interest on loans to pay Lizzies tuition 3,580 Lizzies room and board at college 13,000 Cash contributions to the Red Cross 620 Comprehensive Problem 6-63 Part-a (Algo) a. Determine Joe and Jessies AGI and taxable income for the year. (Round your intermediate calculations to the nearest whole dollar amount.)