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 blind 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 $$729.$ Joe and Jessie have summarized the income and expenses they

expect to report this year as follows:

Income:

Joe's salary

Jessie's craft sales

Interest from certificate of deposit

Interest from Treasury bond funds

$$145,400$

Interest from municipal bond funds

$18,530$

$1,780$

Interest from municipal bond funds $946$

Expenditures:

Federal income tax withheld from Joe's wages

$$13,700$

State income tax withheld from Joe's wages

$6,660$

Social Security tax withheld from Joe's wages $7,534$

Real estate taxes on residence $,6,460$

Automobile licenses $($based on weight$)336$

State sales tax paid $,1,280$

Home mortgage interest $27,300$

Interest on Masterdebt credit card $2,560$

Medical expenses $(unreimbursed)1,820$

Joe's employee expenses $($unreimbursed$)2,660$

Cost $of$ Jessie's craft supplies $5,690$

Postage for mailing crafts $158$

Travel and lodging for craft shows $,2,360$

Self$-$employment tax on Jessie's craft income $1,458$

College tuition paid for Lizzie $6,040$

Interest on loans to pay Lizzie's tuition $3,460$

Lizzie's room and board at college $12,880$

Cash contributions to the Red Cross $590$

Determine Joe and Jessie's AGI and taxable income for the year.