Kobe Company has manufactured $200$ partially finished cabinets at a cost of $$100,000.$ These can be sold as is for $$120,000.$ Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $$24,000,$ and the finished cabinets could be sold for $$160,000.$ If Kobe Company processes the cabinets further, incremental income is:

Multiple Choice

$$40,000.$

$$76,000.$

$$60,000.$

$$16,000.$

$$26,000.$