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 $784. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. Please show on an actual tax form and provide formulas for calculations if possible to see how the answer occurred.Income:Joe's salary$ 144,700Jessie's craft sales18,460Interest from certificate of deposit1,710Interest from Treasury bond funds728Interest from municipal bond funds932Expenditures:Federal income tax withheld from Joe's wages$ 13,700State income tax withheld from Joe's wages6,520Social Security tax withheld from Joe's wages7,506Real estate taxes on residence6,320Automobile licenses (based on weight)322State sales tax paid1,210Home mortgage interest26,600Interest on Masterdebt credit card2,420Medical expenses (unreimbursed)1,750Joe's employee expenses (unreimbursed)2,520Cost of Jessie's craft supplies4,920Postage for mailing crafts151Travel and lodging for craft shows2,290Self- employment tax on Jessie's craft income1,568College tuition paid for Lizzie5,900Interest on loans to pay Lizzie's tuition3,320Lizzie's room and board at college12,740Cash contributions to the Red Cross555.