Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joeworks as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie’s craftbusiness consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spendsconsiderable time and effort on her craft business and it has been consistently profitable over the years. Joe and Jessieown a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie’s collegeexpenses (balance of 835,000}.Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Based on their estimates, determineJoe and Jessie’s AGI and taxable income for the year. They have summarized the income and expenses they expect toreport this year as follows:—-Interest from certificate of deposit 1,650Interest from Treasury bond fundsInterest from municipal bond fundsFederal income tax withheld from Joe’s wages 8 13,700State income tax withheld from Joe’s wages 6,400