If Year-End Inventory Is Reduced from Cost to a Lower

If year-end inventory is reduced from cost to a lower replacement cost, which of the following accurately depicts the results?

A) The capital account balance is increased and beginning inventory of the next period is reduced by the same amount.
B) Cost of goods sold is reduced and beginning inventory of the next period is reduced by the same amount.
C) Year-end inventory is reduced and cost of goods sold is reduced by the same amount.
D) Cost of goods sold is increased and ending inventory is decreased by the same amount.