85. A construction company uses the percentage-ofcompletion method for long-term construction contracts. A particular job was begun in 2006 and completed 2008. During 2007, it appeared that the project would cost 25 percent more than originally eXpected. Data at each year-end are given below: 2006 2007 2008 End ofyear estimated cost remaining ..... $200,00 $100,00 $ -0- Annual cost incurred ..................... 200,00 200,00 60,00 The contract price was $700,000. Assuming the company properly recorded income in 2006, how much income should be recorded in 2007? A. $10,000 B. $42,000 (1. $160,000 D. $192,000