Maxwell Oil and Gas Company owned the following unproved property as of the end of 2019:

Although no activity took place on Lease A during the year, Maxwell decided that Lease A was not impaired, because there were still three years left in that lease’s primary term. Two dry holes were drilled on Lease B during the year. However, since Maxwell intended to drill one more well on Lease B in the coming year, it decided that Lease B was only 40% impaired. With respect to the individually insignificant leases, past experience indicates that 70% of all unproved properties assessed on a group basis will eventually be abandoned. Maxwell’s policy is to provide at year-end an allowance equal to 70% of the gross cost of these properties.
The allowance account had a balance of $20,000 at year-end.
REQUIRED: Give the entries to record impairment.

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Significant Leases Individually Insignificant Leases Lease A $350,000 Lease C $ 50,000 Lease B 400,000 Lease D 25,000 Total $750,000 Lease E 40,000 Lease F 30,000 Total $145,000