Dully Inc. purchased equipment for $330,000 in 2015 at which time they estimated the useful life of the asset to be 3 years and a residual value of $10,000 The company depreciate the asset using the straight-line method After 4 years of using the asset the company determined it should be tested for impairment due to technological change. The company estrated it will asset for 3 remaining years and will generate cash flows of $50,000 per year Duffy Inc. uses a 10% discount rate when testing for impairment. What effect, if any, does the recording of the impairment have on the income statement and balance sheet? Increase net income and decrease assets No effect on income statement, assets decrease Decrease net income and decrease assets No overall effect on the income statement or balance sheet None of the above