1-In September Ashley spent $5,000 on qualified educational expenses. She received a loan for $4,500 in the same month she paid the expenses. During the semester, she received a scholarship of $1,000 that she properly excluded from income. How much is the amount of qualified educational expenses?
2-In 2012 thru 2015, Korey, who is single, borrowed a total of $25,000 for higher education expenses on qualified education loans. In 2016, while still living at home and being claimed by his parents as a dependent, he began making payments on the loan. The first year’s interest on the loan was reported as $550. How much Korey can claim on his tax return?