FuturePetro Holdings owned the following unproved property as of the end of 1980.

Significant Leases		Insignificant Leases
Lease M	$500,000	Lease N	$85,000
Lease O	$330,000	Lease P	$50,000
Total	$830,000	Lease Q	$45,000
		Lease R	$40,000
		Total	$220,000

Although no activity took place on Lease M during the year, FuturePetro decided that Lease M was not impaired because there were still two years left in that lease’s primary term. One dry hole was drilled on Lease O during the year; but because FuturePetro intended to drill one more well on Lease O in the coming year, it decided that Lease O was only 55% impaired. With respect to the insignificant leases, past experience indicates that 72% of all unproved properties assessed on a group basis will eventually be abandoned. FuturePetro’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 $28,000 at year end. Give the entries to record impairment, prepare the general ledger, and calculate the earnings per share.