On January 2, 2022, Company W replaced its equipment with a more efficient one. The following information was available on that date:

Purchase price of new equipment		$60,000
Carrying amount of old equipment		5,000
Fair value of old equipment		2,000
Old equipment sold for		3,000
Installation cost of new equipment		8,000

Use information above, calculate the amount of cash Company W paid for the exchange?

• A.

  $65,000

• B.

  $63,000

• C.

  $60,000

• D.

  $62,000