Cameron Oil Company, a successful efforts company, has capitalized costs on Property R, Property S, and Property T as of 12/31/2018 as follows:

Cameron has no other capitalized costs. The properties are located in different regions in the United States.

REQUIRED: If necessary, test the assets for impairment and make any necessary journal entries, assuming production costs tripled late in the year on all three properties and that production costs are not expected to decrease.

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Net capitalized costs Expected undiscounted future net cash flows Fair value (discounted future net cash flows) Property R Property S Property T $600,000 $540,000 $540,000 550,000 600,000 520,000 450,000 540,000 500,000