Peer Company Acquires Spear Corporation's Assets and Liabilities, in a Nontaxable

Peer Company acquires Spear Corporation's assets and liabilities, in a nontaxable acquisition. The tax basis of Spear's identifiable intangible assets is $1 million, with an average remaining life of 5 years, straight-line. The fair value of the identifiable intangible assets at the date of acquisition is $26 million. Assume the tax rate is 25%.
Based on this information, because of the difference between reporting Spear's plant assets on the books versus tax return, each year for the next 5 years Peer will:

A) Credit deferred tax liabilities $6.25 million
B) Debit deferred tax liabilities $1.25 million
C) Debit deferred tax assets $1.25 million
D) Credit deferred tax assets $6.25 million