Home Depot records an inventory write$-$down for lumber inventory, driven by the drop in market prices of lumber.

Lumber inventory with a book value of $$500$ million is written down by approximately $10\%.$ Home Depot has a tax rate of $20\%.$

Which of the following transactions should occur?

Inventory, an asset is decreased $$450$M

Retained earnings is decreased $$450$M

Income tax expense is increased $$450$M

Deferred tax asset is increased $$10$M