Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $29,500 from County Bank and paid interest of $1,770. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances.

b. Lionel's AGI before deducting interest on higher-education loans is $79,000.

Higher education expenses	$2,000 selected answer correct
Interest deduction	$800 selected answer incorrect