Frank Elsholz is the new chief executive officer (CEO) of Kearl Street Company. You are the controller for Kearl Street; you have been with the company for 15 years. In connection with the preparation of this year’s financial statements (the first prepared since the departure of the old management team), Frank has asked you to bring him a list of all long-term assets, both tangible and intangible, that have any chance of becoming impaired within the next three years. Some of Kearl Street’s long-term assets have appreciated substantially since they were acquired, so there is little chance that they will be impaired in the foreseeable future. However, other assets could become impaired in the next three years, depending on what happens to local business conditions. If a long-term asset becomes impaired, its carrying value is written down and a loss is recognized, as explained in Chapter 11. You are curious about why the new CEO wants you to compile this list. Speculate on what you think Frank has in mind.