Problem 3: Conseco Oil, Inc. has an account titled Oil and Gas Properties. Conseco paid $6,600,000 for oil reserves holding an estimated 1,000,000 barrels of oil. Assume the company paid $570,000 for additional geological tests of the property and $450,000 to prepare for drilling. During the first year, Conseco removed and sold 72,000 barrels of oil. Record all of Conseco's transactions, including depletion for the first year. Requirement: Prepare the journal entry (if any) to record impairment (if any) at December 31, 2020. Problem 4: Kim Boxx Lee Co. incurred $115,000 of experimental and development costs in its laboratory during 2019 to develop a patent that was granted on July 1, 2020. Legal fees and other costs paid at July 1 associated with registration of the patent totaled $27,000. Expenditures for successful litigation in defense of the patent totaling $8,700 were paid on November 1, 2020. The Company estimates that the useful life of the patent will be 15 years. Record the journal entries required for 2019 and 2020 for these expenditures and any required end-of-the fiscal year adjusting entries for the two years. The company is on a calendar year basis for financial reporting