PetroSolutions owned the following unproved property as of the end of 2003.

Significant Leases		Insignificant Leases
Lease A	$520,000	Lease B	$75,000
Lease C	$300,000	Lease D	$50,000
Total	$820,000	Lease E	$35,000
		Lease F	$25,000
		Total	$185,000

Although no activity took place on Lease A during the year, PetroSolutions decided that Lease A was not impaired because there were still four years left in that lease’s primary term. One dry hole was drilled on Lease C during the year; but because PetroSolutions 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 68% of all unproved properties assessed on a group basis will eventually be abandoned. PetroSolutions’s policy is to provide at year-end an allowance equal to 70% of the gross cost of these properties. The allowance account had a balance of $24,000 at year end. Give the entries to record impairment, calculate income tax expense, and prepare the post-closing trial balance.