EnergyRise Exploration owned the following unproved property as of the end of 2015.

Significant Leases		Insignificant Leases
Lease S	$300,000	Lease T	$60,000
Lease U	$350,000	Lease V	$50,000
Total	$650,000	Lease W	$40,000
		Lease X	$30,000
		Total	$180,000

Although no activity took place on Lease S during the year, EnergyRise decided that Lease S was not impaired because there were still five years left in that lease’s primary term. One dry hole was drilled on Lease U during the year; but because EnergyRise intended to drill one more well on Lease U in the coming year, it decided that Lease U was only 55% 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. EnergyRise’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 $23,000 at year end. Give the entries to record impairment, prepare the adjusted trial balance, and calculate the current tax expense.