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Mars Petroleum owned the following unproved property at 12/31/93: Significant Leases Cost Impairment Insignificant Leases Cost Total Impairment Lease A $340,000 $140,000 Lease C $45,000

Mars Petroleum owned the following unproved property at 12/31/93:

Significant Leases

Cost

Impairment

Insignificant Leases

Cost

Total Impairment

Lease A

$340,000

$140,000

Lease C

$45,000


Lease B

$490,000

$150,000

Lease D

$32,000





Lease E

$25,000





Lease F

$20,000






$122,000

$48,000

Requirement:
 Prepare journal entries for 2094, assuming the following events:
 a. Lease A was sold for $350,000.
 b. Lease B was abandoned.
 c. Proved reserves were found on Lease D and Lease F.

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