[The following information applies to the questions displayed below.] 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 $833. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income:
Joes salary	$ 129,300
Jessies craft sales	18,420
Interest from certificate of deposit	1,670
Interest from Treasury bond funds	720
Interest from municipal bond funds	924
Expenditures:
Federal income tax withheld from Joes wages	$ 13,700
State income tax withheld from Joes wages	6,440
Social Security tax withheld from Joes wages	7,490
Real estate taxes on residence	6,240
Automobile licenses (based on weight)	314
State sales tax paid	1,170
Home mortgage interest	16,200
Interest on Masterdebt credit card	2,340
Medical expenses (unreimbursed)	1,710
Joes employee expenses (unreimbursed)	2,440
Cost of Jessies craft supplies	4,480
Postage for mailing crafts	147
Travel and lodging for craft shows	2,250
Self-employment tax on Jessies craft income	1,666
College tuition paid for Lizzie	5,820
Interest on loans to pay Lizzies tuition	3,240
Lizzies room and board at college	12,660
Cash contributions to the Red Cross	535

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.)