At the end of 20X1, Wolfpack Corp. recorded an impairment for one of its property, plant, and equipment (PP&E) items. All else being equal, what is the effect of the impairment journal entry on the 20X1 financial statements? Also, answer the Accounting Check question that follows.
A) Net Income: Decrease
B) Assets: Decrease
C) Liabilities: No effect
D) Owners' Equity: Decrease