PrimePetro Inc. owned the following unproved property as of the end of 2013.

Significant Leases		Insignificant Leases
Lease A	$500,000	Lease B	$75,000
Lease C	$350,000	Lease D	$40,000
Total	$850,000	Lease E	$45,000
		Lease F	$30,000
		Total	$190,000

Although no activity took place on Lease A during the year, PrimePetro decided that Lease A was not impaired because there were still three years left in that lease’s primary term. Two dry holes were drilled on Lease C during the year; but because PrimePetro intended to drill one more well on Lease C in the coming year, it decided that Lease C was only 60% impaired. With respect to the insignificant leases, past experience indicates that 70% of all unproved properties assessed on a group basis will eventually be abandoned. PrimePetro’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 $20,000 at year end. Give the entries to record impairment, calculate the necessary ledgers, and prepare the adjusted trial balance.