***Please note that this is for tax year 2020***

Required Information Comprehensive Problem 6-63 (LO 6-1, LO 6.2, LO 6-3) (Algo) [The following information apolies to the questions displayed below] Joe and Jessie are married and have one dependent child. Lizzie. Lizzie is currently in coliege at State University. Joe works as a design engineer for 8 msnufacturing firm while Jessie runs 5 croft business from their home. Jessie's croft business consists of making craft hems 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 ioan (balance of $220.000 ) and a personal loan to pay for Lizzle's college expenses (bsisnce 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 $854. Joe and Jessie have summarized the income and expenses they expect to report this yesr as follows: Comprehenslve Problem 6.63 Pert-6 (Algo) a. Determine Joe and Jessie's AGI and taxabie income for the year, (Reumel yeur Intermedlate ealeulatlens to the itedredt whale dellar ameumt.)