Hein Oil Company, a successful efforts company, owns 100% of the working interest in a proved property that has the following capitalized costs:

A 1/8 royalty on the property is owned by Sammy Jones. Hein sells the working interest for \($1,200,000\) and retains a production payment interest of \($300,000\). The production payment interest is payable from the proceeds from 30% of the working interest share of production. The fair market value of the entire original working interest is $1,500,000.
Prepare the journal entry by Hein to record the above transaction, assuming that payment of the production payment interest is not reasonably assured.

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Proved Property. $240,000 IDC ... 600,000 Equipment. 400,000 Total Accumulated DD&A. 200,000