Question: Exercise C A machine costing USD 120,000, on which USD 90,000 of up-todate depreciation has been accumulated, was completely destroyed by fire. What journal entry

Exercise C A machine costing USD 120,000, on which USD 90,000 of up-todate depreciation has been accumulated, was completely destroyed by fire. What journal entry should record the machine's destruction and the resulting fire loss under each of the following unrelated assumptions?

a. The machine was not insured.

b. The machine was insured, and it is estimated that USD 22,500 will be recovered from the insurance company.

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