FuturePetro Inc. owned the following unproved property as of the end of 1982.

Significant Leases		Insignificant Leases
Lease A	$550,000	Lease B	$85,000
Lease C	$320,000	Lease D	$50,000
Total	$870,000	Lease E	$40,000
		Lease F	$35,000
		Total	$210,000

Although no activity took place on Lease A during the year, FuturePetro decided that Lease A was not impaired because there were still two years left in that lease’s primary term. Two dry holes were drilled on Lease C during the year; but because FuturePetro intended to drill one more well on Lease C in the coming year, it decided that Lease C was only 50% 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 $26,000 at year end. Give the entries to record impairment, prepare the general ledger, and calculate the current tax expense.