Tempo Company has 20,000 units of its product that were produced at a cost of $300,000. The units were damaged in a rainstorm. Tempo can sell the units as scrap for $40,000, or it can rework the units at a cost of $76,000 and then sell them for $100,000. If Tempo Company reworks the units, what will the incremental income will be?

a.$(16,000).

b.$16,000.

c.$24,000.

d.$64,000.

e.$(236,000).