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Curmudgeon Oil Company owns an individually significant lease with a cost of $980,000.No impairment has been taken on the lease. A well on an adjacent

Curmudgeon Oil Company owns an individually significant lease with a cost of $980,000.No impairment has been taken on the lease. A well on an adjacent lease however was recently drilled and no economically viable quantities of oil were found (a dry hole). Curmudgeon now considers the lease to be 45% impaired. Record the journal entry for the impairment.

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