InnovativeOil Ltd. owned the following unproved property as of the end of 2019.

Significant Leases		Insignificant Leases
Lease Q	$500,000	Lease R	$65,000
Lease S	$400,000	Lease T	$50,000
Total	$900,000	Lease U	$40,000
		Lease V	$30,000
		Total	$185,000

Although no activity took place on Lease Q during the year, InnovativeOil decided that Lease Q was not impaired because there were still three years left in that lease’s primary term. Four dry holes were drilled on Lease S during the year; but because InnovativeOil intended to drill one more well on Lease S in the coming year, it decided that Lease S was only 40% impaired. With respect to the insignificant leases, past experience indicates that 68% of all unproved properties assessed on a group basis will eventually be abandoned. InnovativeOil’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 $27,000 at year end. Give the entries to record impairment, calculate income tax expense, and prepare the post-closing trial balance.