Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $34,000 from County Bank and paid interest of $2,040. 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: (Leave no answer blank. Enter zero if applicable.)

a. Lionel's AGI before deducting interest on higher-education loans is $50,000.

Higher Education Expenses	$4,000
Interest Deduction	$2,040

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

Higher Education Expenses
Interest Deduction	$816

Value is not 4,000