King Oil Company owned the following unproved property at 12/31/04:

Significant Leases	Cost	Impairment	Insignificant Leases	Cost	Total Impairment
Lease A	$300,000	$200,000	Lease C	$20,000
Lease B	$400,000	$100,000	Lease D	$30,000
			Lease E	$15,000
			Lease F	$10,000
				$75,000	$32,000

Requirement:
 Prepare journal entries for 2005, assuming the following events:
 a. Found proved reserves on Leases A & B.
 b. Lease D was sold for $35,000.
 c. Lease F was impaired by an additional $3,000.