According to the New York Times:

U.S. gross domestic product, the broadest measure of goods and services produced in the economy, fell at a 4.8 percent annual rate in the first quarter of the year, the Commerce Department said Wednesday. That is the first decline since 2014, and the worst quarterly contraction since the country was in a deep recession more than a decade ago. Even so, most of the quarter came before the coronavirus pandemic forced widespread shutdowns and layoffs. Economists expect figures from the current quarter to show G.D.P. contracting at an annual rate of 30 percent or more.

These changes will have a significant impact on the operations and balance sheet of U.S. companies. With this in mind, and based on your experience in this course, please address the following questions below:

1. Discuss the purpose of depreciation (or amortization) vs. an impairment loss.
2. What considerations should be made regarding a potential impairment in the financial statements? What financial statement balances may be impacted?