CrystalOil Ventures owned the following unproved property as of the end of 2016.

Significant Leases		Insignificant Leases
Lease M	$350,000	Lease N	$55,000
Lease O	$450,000	Lease P	$45,000
Total	$800,000	Lease Q	$35,000
		Lease R	$25,000
		Total	$160,000

Although no activity took place on Lease M during the year, CrystalOil decided that Lease M was not impaired because there were still three years left in that lease’s primary term. Two dry holes were drilled on Lease O during the year; but because CrystalOil intended to drill one more well on Lease O in the coming year, it decided that Lease O was only 40% impaired. With respect to the insignificant leases, past experience indicates that 75% of all unproved properties assessed on a group basis will eventually be abandoned. CrystalOil’s policy is to provide at year-end an allowance equal to 68% of the gross cost of these properties. The allowance account had a balance of $22,000 at year end. Give the entries to record impairment, prepare the statement of financial position, and calculate the deferred tax liability.