When reviewing the financial statements for Bent Corp you were surprised by the significant losses they incurred in the previous year. Although not your best investment, they always provided adequate returns. Further investigation identified the two main reasons for the loss. The first was settlement of a significant lawsuit brought against them for patent infringement. As part of the settlement, Bent can continue using the patented process without further cost. The second significant cost was that equipment used in an unrelated business segment was determined to be impaired. The reason given for the impairment was that technological change in the equipment they used in that business segment could be replaced with equipment which cost significantly less than what they paid for the equipment now in use. They claimed continuing to depreciate the equipment based on its original cost distorts their profitability. Evaluate how these two events would affect your calculation of permanent income.