Tate Corporation made the following transactions relating to an unproved property during 2018:

Zepher #1 was drilled, with IDC costs of $400,000 and equipment costs of

$80,000. The well was determined to be dry and was plugged and abandoned at a cost of $10,000. Salvaged equipment placed in inventory was valued at $5,000.

REQUIRED: Prepare journal entries for the transactions.