On January 2, year 1, Parke Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler $60,000
Carrying amount of old boiler 5,000
Fair value of old boiler 2,000
Installation cost of new boiler 8,000

The old boiler was sold for $2,000. What amount should Parke capitalize as the cost of the new boiler?​

A. $60,000
B. $63,000
C. $68,000
D. $66,000