Company Z (a successful-efforts company) owns 100% WI in a lease in which Dudley Smith owns a 1/8 RI. Company Z conveys to Company Q 30% of the WI in exchange for a cash consideration of \($10,000\). The undeveloped lease has capitalized costs of

\($40,000\) and an impairment allowance of $15,000.

a. Give the entry for Company Z to record the conveyance.

b. Give the entry if the interest had sold for $30,000.