When preparing its interim financial statements for the first quarter of Year 2, Nodal Ltd. recorded a provision on an onerous contract. At this date, the expected loss from fulfilling the contract was $25,000, while the cancellation penalty was $30,000. Nodal took partial delivery during the next quarter. At the end of the second quarter, the expected loss from fulfilling the contract was $17,000 while the cancellation penalty was $15,000. Which one of the following represents the total adjustment that Nodal will record in its second quarter, Year 2?

A. Increase the provision by $15,000

B. Increase the provision by $2,000

C. Decrease the provision by $8,000

D. Decrease the provision by $10,000