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Galaxy Oil owned the following unproved property at 12/31/47: Significant Leases: Lease A: $400,000, Impairment: $150,000 Lease B: $450,000, Impairment: $180,000 Insignificant Leases: Lease C:
Galaxy Oil owned the following unproved property at 12/31/47:
- Significant Leases:
Lease A: $400,000, Impairment: $150,000
Lease B: $450,000, Impairment: $180,000 - Insignificant Leases:
Lease C: $35,000
Lease D: $25,000
Lease E: $20,000
Lease F: $15,000
Total Cost: $100,000, Total Impairment: $45,000
Prepare journal entries for 2048, assuming the following events:
a. Lease A was abandoned.
b. Lease B was sold for $470,000.
c. Proved reserves were found on Lease E and Lease F.
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