Answer Happy

Matt Holmes recently joined Klax Company as a staff accountant
in the controller's office. Klax Company provides warehousing
services for companies in several midwestern cities.
The location in Dubuque, Iowa, has not been performing well due
to increased competition and the loss of several customers that
have recently gone out of business. Matt's department manager
suspects that the plant and equipment may be impaired and wonders
whether those assets should be written down. Given the company's
prior success, this issue has never arisen in the past, and Matt
has been asked to conduct some research on this issue.
Instructions
Give several examples of events that would cause an asset to be
tested for impairment. Does it appear that Klax should perform an
impairment test? Explain.