The Adelaide Advertising Agency, a cash basis taxpayer, bills its clients for services it renders and any out-of-pocket expenses it pays to third parties on behalf of its clients. For example, in creating a television commercial for a client, Adelaide charges the client for its staff time in creating the commercial and the third-party costs of filming and editing the commercial. During the year, Adelaide bills its clients $2,800,000. Of this amount, $600,000 is for expenses it pays to third parties. On December 31, the accounts receivable ledger shows a balance due to Adelaide of $400,000, $35,000 of which is for third-party expenses. How much of the third-party expenses can Adelaide deduct during the current year?