EcoPower Ventures owned the following unproved property as of the end of 1997.

Significant Leases		Insignificant Leases
Lease G	$470,000	Lease H	$80,000
Lease I	$310,000	Lease J	$40,000
Total	$780,000	Lease K	$35,000
		Lease L	$25,000
		Total	$180,000

Although no activity took place on Lease G during the year, EcoPower decided that Lease G was not impaired because there were still three years left in that lease’s primary term. One dry hole was drilled on Lease I during the year; but because EcoPower intended to drill one more well on Lease I in the coming year, it decided that Lease I was only 50% impaired. With respect to the insignificant leases, past experience indicates that 70% of all unproved properties assessed on a group basis will eventually be abandoned. EcoPower’s policy is to provide at year-end an allowance equal to 65% of the gross cost of these properties. The allowance account had a balance of $20,000 at year end. Give the entries to record impairment, prepare the general ledger, and adjust the trial balance.