5. Khaleds company had a machine destroyed by fire. The machine originally cost $120,000. The accumulated depreciation on it was $60,000. The proceeds from the insurance company were $90,000. The company should recognize: A. A loss of $25,000 B. A gain of $25,000 C. A loss of $65,000 D. A gain of $30,000 E. A gain of $90,000

6. Land improvements are: A. Assets that increase the usefulness of land and like land, are not depreciated B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation C. Included in the cost of the land account D. Expensed in the period incurred