TechWave Oil Corporation owned the following unproved property as of the end of 2023.

Significant Leases		Insignificant Leases
Lease A	$400,000	Lease C	$60,000
Lease B	$250,000	Lease D	$30,000
Total	$650,000	Lease E	$50,000
		Lease F	$35,000
		Total	$175,000

Although no activity took place on Lease A during the year, TechWave decided that Lease A was not impaired because there were still two years left in that lease’s primary term. One dry hole was drilled on Lease B during the year; but because TechWave intended to drill one more well on Lease B in the coming year, it decided that Lease B was only 50% impaired. With respect to the insignificant leases, past experience indicates that 60% of all unproved properties assessed on a group basis will eventually be abandoned. TechWave’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 $25,000 at year end. Give the entries to record impairment, calculate the necessary ledgers, and prepare the adjusted trial balance.