A machine costing \(\$ 120,000\), on which \(\$ 90,000\) of up-to-date 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 \(\$ 22,500\) will be recovered from the insurance company.