Transmountain Oil Company acquired 4 leases during the year Lease A $235,000...
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Accounting
Transmountain Oil Company acquired 4 leases during the year
Lease A
$235,000
Lease B
$525,000
Lease C
$190,000
Lease D
$620,000
$1,570,000
Each lease is considered to be individually insignificant. Transmountains policy is to provide a year-end allowance equal to 70% of all individually insignificant leases. The allowance account had a $45,000 impairment at the end of the year.Record the journal entries to account for the impairment.
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