Penguin, Inc $\text {Snowtiake, Corp.}$ $\text {Balance Slieet}$ $\text {Acquisition Date}$

Penguin, Inc. acquires 100% of the outstanding shares of Snowflake Corp. for $2,250,000 and accounts for the transaction using the purchase method. Snowflake's balance sheet at the acquisition date is as follows:
$\text {Snowtiake, Corp.}$
$\text {Balance Slieet}$
$\text {Acquisition Date}$
$\begin{array}{llcc}&& \text {Current}\\ \text { } & \text {Historical} & \text {Manket} \\ \text { } & \text { Cost}&\text {Value}\\ \text { Assets} &\\ \text {Current Assets } &\$900,000&\$900,000\\ \text {Depreciable Assetsless Accumulated Depreciation } &\$875,000&\$1,250,000\\ \text { Goodwill } &\\ \text {Total Assets } & \$1,775,000 \\\\ \text { Liabilities and Equities } &\\ \text {Liabilities } &\$1,100,000&\$1,100,000\\ \text {Deferred Income Tax Liability } &\$125,000&\$125,000\\ \text {Shareholders' Equity } &\$550,000\\ \text { Total Liabilities and Equities} &\$1,775,000\\\end{array}$
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Based on the information concerning Snowflake Corp. by what amount would Penguin increase depreciable assets when it consolidates Snowflake on the acquisition date?

A) $1,775,000
B) $475,000
C) $2,250,000
D) $375,000