(a) Sandman Oil Company, a successful efforts company, has three fields, A, B, and C. Costs and cash flows for the three fields are as follows:
Field A Field B Field C
Net capitalized costs 4,000,000 5,000,000 6,000,000
Expected undiscounted future cash flows 4,500,000 4,000,000 5,000,000
Expected discounted future cash flows 3,850,000 3,900,000 3,700,000
Determine the impairment charge for each lease for the year.