Joe and Jessie are marrled and have one dependent child, LIzzie. Lizzle is currently in college at State University. Joe works as a design engineer for a manufacturing firm, while Jessie runs a craft business from thelr home. Jessle's craft business consists of making craft items for sale at craft shows that are held perlodically at varlous locations. Jessie spends considerable time and effort on her craft business, and It has been consistently profitable over the years. Joe and Jessle own a home and pay Interest on thelr home loan $($balance of $$220,000)$ and a personal loan to pay for Lizzle's college expenses $($balance of $$35,000).$

Nelther Joe nor Jessie is blind or over age $65,$ and they plan to file as marrled Jolnt. Assume that the employer portion of the self$-$employment tax on Jessie's income is $$635.$ Joe and Jessie have summarlzed the income and expenses they expect to report this year as follows:

$\backslash$table$[[$Income:$,],[$Joe$\text{'}$s salary,$146,600],[$Jessie$\text{'}$s craft sales,$18,650],[$Interest from certificate of deposit,$1,900],[$Interest from Treasury bond funds,$766],[$Interest from municipal bond funds,$970],[$Expenditures:$,$$$13,700],[$Federal income tax withheld from Joe's wages,$6,900],[$State income tax withheld from Joe's wages,$7,582],[$Social security tax withheld from Joe's wages,$6,700],[$Real estate taxes on residence,$360],[$Automobile licenses $($based on weight$),1,400],[$State sales tax paid,$28,500],[$Home mortgage interest,$2,800],[$Interest on Masterdebt credit card,$1,940],[$Medical expenses $($unreimbursed$),2,900],[$Joe$\text{'}$s employee expenses $($unreimbursed$),7,010],[$Cost of Jessie's craft supplies,$170],[$Postage for mailing crafts,$2,480],[$Travel and lodging for craft shows,$1,270],[$Self$-$employment tax on Jessie's craft income,$6,280],[$College tuition paid for Lizzie,$3,780],[$Interest on loans to pay Lizzie's tuition,$13,120],[$Lizzie$\text{'}$s room and board at college,$650]]$

Comprehensive Problem $6-65$ Part$-$a $($Algo$)$

a$.$ Determine Joe and Jessie's AGI and taxable Income for the year.

Note: Round your Intermedlate calculations to the nearest whole dollar amount.

Answer is complete but not entirely correct.

$\backslash$table$[[$Joe and Jessie's AGI,$$,167,598$x$],[$Joe and Jessie's Taxable income,$$,139,898$x$]]$