SolarPetro Inc. owned the following unproved property as of the end of 2004.

Significant Leases		Insignificant Leases
Lease X	$600,000	Lease Y	$80,000
Lease Z	$350,000	Lease W	$45,000
Total	$950,000	Lease V	$40,000
		Lease U	$30,000
		Total	$195,000

Although no activity took place on Lease X during the year, SolarPetro decided that Lease X was not impaired because there were still three years left in that lease’s primary term. Three dry holes were drilled on Lease Z during the year; but because SolarPetro intended to drill one more well on Lease Z in the coming year, it decided that Lease Z was only 50% 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. SolarPetro’s policy is to provide at year-end an allowance equal to 75% of the gross cost of these properties. The allowance account had a balance of $25,000 at year end. Give the entries to record impairment, prepare the general ledger, and calculate the earnings per share.