Nadia has owned her house since 2012 and a cottage since 2007. She has been the only occupant of both properties since she acquired them. In 2018 she sold both properties, earning a capital gain of $56,000 on the house and $60,000 on the cottage. How much principal residence exemption would you recommend that she claim on the cottage?

A. $25,000

B. $35,000

C. $38,181

D. $60,000