Cody Corp. incurred the following costs during 2006: Design of tools, jigs, molds, and dies involving new technology $125,000 Modification of the formulation of a process 160,000 Troubleshooting in connection with breakdowns during commercial production 100,000 Adaption of an existing capability to a particular customer's need as part of a continuing commercial activity 110,000 In its 2006 income statement, Cody should report research and development expense of $160,000 $285,000 O $125,000 O $235,000