The Following Information Pertains to Inventory Held by a Company

The following information pertains to inventory held by a company at December 31, 2013. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

A) U.S. GAAP income is $1,000 higher.
B) U.S. GAAP income is $2,000 lower.
C) IFRS income is $1,000 higher.
D) IFRS income is $1,000 lower.
E) IFRS income is $5,000 higher.