You are auditing the long-lived assets of ACME semiconductor company and in discussions with the Chief Accounting Officer (CAO) you learn that the Company intends to shut down one of its product lines produced in one of its factories in two years. The factory and related plant assets cannot be used for any of ACME's other product lines. Currently, the Company is depreciating its plant assets (comprised principally of machinery and equipment and a building) over their remaining useful life of 10 years. In providing advice to the CAO and considering what to do in the audit, your best course of action is to:

a. Recommend that the client not consider this a triggering event until the plant is actually closed but recommend the client reassess the estimated useful life and start depreciating the plant assets over the remaining life of 2 years.

b. Recommend the client consider this a triggering event and have the client perform an impairment assessment on the plant assets and write-down the plant assets, if needed, to their fair market value. Once any necessary impairment write-downs are taken, continue to depreciate any remaining net book value over the plant assets original remaining useful life of 10 years until the closure occurs.

c. Recommend the client consider this a triggering event and have the client perform an impairment assessment on the plant assets and write-down the plant assets, if needed, to their fair market value. Once any necessary impairment write-downs are taken, adjust the estimated useful life of the plant assets to 2 years for any remaining net book value.

d. Recommend that the client consider this a triggering event and have the client perform an impairment assessment on the plant assets and fully write-down the assets as it is likely that there will be a full impairment of the plant assets given the shortened useful life of the plant and the lack of alternative uses for the plant.