Porter Oil Company acquired a lease on October 15, 2005, for \($200,000\) cash. No drilling was done on the lease during the first year. Since Porter wished to retain the lease, a delay rental of \($10,000\) was paid on October 15, 2006. During November and December of 2006, three dry holes were drilled on surrounding leases. Based on the dry holes, Porter’s management decided that the lease was 75% impaired. Porter had still not started drilling operations by the end of the second year and so paid a second delay rental. During November 2007, with less than one year of the primary term left, Porter drilled a dry hole on the lease and decided to abandon the lease. Because the end of Porter’s accounting period is December 31 and for income tax purposes, Porter executed a quit claim deed and relinquished all rights to the lease the last day of November 2007. Give the entries.