1. A company experiences an isolated fire which destroys a fork-lift. The fork-lift originally cost $150,000 with accumulated depreciation of S90,000. The proceeds from the insurance company resulted in the company receiving a $70,000 check. The company should recognize A. A loss of $10,000 B. A gain of $10,000 C. A loss of $90,000 D. A gain of $70,000 E. A gain of $90,000 2. A primary reason many companies use accelerated depreciation in computing taxable income is because A) It is required by the tax rules B) It is required by financial reporting rules It increases the value of depreciation expense in the early years which in turn reduces taxable income in those same year D) Using it causes a company to use higher income in the carly years of the asset's useful life E) The results are identical to straight-line depreciation