Java Have It, is a coffee distributor. For the most recent reporting period the firm impaired its' PP&E. Arguably, which of the following is true:

Both prior periods and the current period profits are lower than they should be

Impairing the asset will not affect profits because it only involves writing down the value of the asset on the balance sheet

Prior period profits were lower than they should be; and current period profits are higher than they should be

Prior period profits were higher than they should be; and current period profits are lower than they should be