For financial accounting purposes. Thunder, lnc., estimates its bad debts and uses the allowance method in accounting for accounts receivable. At the end of the current year, Thunder had net accounts receivable of $73,000 and an allowance for doubtful accounts of $3, 500. For the year, its bad debt expense was $3,000, and specific charge-offs were $750. What is Thunder's current-year deduction for bad debt expense on its federal income tax return? A. $750 B. $3,000 C. $3, 500 D. $6, 500 Cafe Corporation had the following items of income and expense during the current year: Gross profit from sales $260,000 Deductible operating expenses excluding any charitable contributions 160,000 Dividends received from a nonaffiliated 35%-owned domestic 15,000 corporation Contributions to qualified charitable organizations 6,000 Cafe had no portfolio indebtedness. Cafe Corporation's dividends-received deduction for the current year is A. $15,000 B. $12,000 C. $10, 500 D. $5, 250