On January 2, 2015, York Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler $150,000

Carrying amount of old boiler 10,000

Fair value of old boiler 4,000

Installation cost of new boiler 20,000

The old boiler was sold for $4,000. What amount should York capitalize as the cost of the new boiler?

Select one:

a. $170,000.

b. $160,000.

c. $166,000.

d. $150,000.