Terry Company, a successful efforts company, has 100% of the working interest in a field in Texas. The field constitutes a cost center and is also an asset group for purposes of testing for impairment. In 2019, the price of oil dropped significantly: therefore, Terry must test for impairment. The table below reflects Terry's latest expected cash flows and risk-free rates for the remainder of the life of the field. Year Total Net Cash Flow Estimate (Market) (million $) Credit-Adjusted Risk-Free Rate Probability Assessment 2020 $100.0 30% 90.9 60% 85.3 10% 6.2% 2021 $91.2 50% 88.3 20% 75.4 30% 6.9% 2022 $87.5 70% 91.8 20% 65.5 10% 7.1% 2023 $62.4 55% 50.2 20% 45.8 25% 6.7% 2024 $45.9 80% 55.5 10% 36.0 10% 5.5% 2025 $ 31.6 60% 21.0 20% 15.4 20% 6.1% REQUIRED: a. Assume that Terry's carrying value for the field is $300 million. Determine whether Terry must book impairment and, if so, record the necessary journal entry. Round the present value factors to four decimal places. b. Assume that Terry's carrying value for the field is $400 million. Determine whether Terry must book impairment and, if so, record the necessary journal entry. Round the present value factors to four decimal places.