Bad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of $12,000 and an ending balance of $10,000. What is the

Bad debt expense is $25,000. Allowance for doubtful accounts has a beginning balance of

$12,000 and an ending balance of $10,000. What is the book-tax difference associated with bad

debt expense?

A. $2,000 favorable

B. $2,000 unfavorable

C. $7,000 favorable

D. $7,000 unfavorable

E. None of the above

PLEASE PROVIDE CALCULATION.