Malcolm owns 60% and Buddy owns 40% of Magpie Corporation. On July 1, 2018, each lends the corporation $83,300 at an annual interest rate of 10%. Malcolm and Buddy are not related. Both shareholders are on the cash method of accounting, and Magpie Corporation is on the accrual method. All parties use the calendar year for tax purposes. On June 30, 2019, Magpie repays the loans of $83,300 together with the specified interest.

a. How much of the interest can Magpie Corporation deduct in 2018? In 2019? Round your answers to the nearest whole dollar.

Magpie Corporation can deduct interest expense of $________ in 2018.

Magpie Corporation can deduct interest expense of $________ in 2019.