Charlie Company sells tires. Charlie has discovered that some of its tires have been destroyed. Prior to that, the market value of the destroyed tires was estimated at $1,500,000 and the book value was $1,000,000. Which of the following describes the necessary adjustments to Charlies financial statements as a result of this discovery

A Net income and inventory reductions of $1,000,000 respectively.

B Property, plant and equipment and net income reductions of $1,000,000, respectively.

C Inventory reduction of $1,500,000, net income reduction of $1,000,000 and other comprehensive income reduction of $500,000.

D Property, plant and equipment reduction of $1,000,000, net income reduction of $1,500,000 other comprehensive income increase of $500,000.

E Inventory and net income reductions of $1,500,000 respectively.