At the Date of Acquisition, a Subsidiary's Assets and Liabilities

At the date of acquisition, a subsidiary's assets and liabilities are reported at amounts approximating fair value, except it has previously unreported identifiable intangibles of $25 million (5-year life, straight-line) , and its plant assets are overvalued by $40 million (10-year life, straight-line) . Revaluation write-offs are reported as adjustments to operating expenses. Eliminating entry (O) at the end of the second year following acquisition:

A) Increases operating expenses by $2 million.
B) Reduces operating expenses by $9 million.
C) Increases operating expenses by $18 million.
D) Increases operating expenses by $1 million.