Inventory with a Value of $420 000 Was Written Down

Multiple Choice

Inventory with a value of $420 000 was written down to $250 000 in June 2019 because of falling prices in the industry. This transaction will:

A) decrease assets, profit and shareholders' equity.
B) decrease assets and profit, but not shareholders' equity.
C) decrease assets and shareholders' equity but not profit.
D) None of the above