On January 1, 2014, Portland Company acquired all of Salem Company's voting stock for $17,000,000 in cash. Some of Salem's assets and liabilities at the date of purchase had fair values that differed from reported values, as follows:

	Book value	Fair value
Buildings and equipment, net (20 years, straight-line)	$12,000,000	$ 6,000,000
Identifi able intangibles (6 years, straight-line)	0	12,000,000

Salem's total shareholders' equity at January 1, 2014, was $4,000,000. It is now December 31,2017 (four years later). Salem's retained earnings reflect the accumulation of net income less dividends; there have been no other changes in its retained earnings. Salem does not report any other comprehensive income. Cumulative goodwill impairment to the beginning of 2017 is $1,000,000. Goodwill impairment for 2017 is $500,000. Portland uses the complete equity method to account for its investment. The December 31, 2017, trial balance for Salem appears below.

	Salem Dr (Cr)
Current assets	$2,000,000
Plant assets, net	25,000,000
Liabilities	(9,000,000)
Capital stock	(2,000,000)
Retained earnings, January 1	(13,000,000)
Sales revenue	(12,000,000)
Cost of goods sold	5,000,000
Operating expense	4,000,000
	$ 0

On the 2017 consolidation working paper, eliminating entry (O) increases consolidated operating expenses by

A. $3,000,000

B. $2,200,000

C. $2,700,000

D. $2,500,000