On June 19, 1997, about 1440 Alaska daylight time, an amphibious float equipped Cessna 185F, N60859, crashed during a simulated forced landing on a remote lake, about 10 miles south of Sitka, Alaska. The airplane was being operated as a visual flight rules (VFR) local area instructional flight under Title 14 CFR Part 91 when the accident occurred. The airplane, operated by Mountain Aviation Inc., Sitka, sustained substantial damage. The certificated commercial pilot (first pilot), a certificated airline transport pilot (second pilot), and the sole passenger, were not injured. Visual meteorological conditions prevailed. A VFR flight plan was filed. The flight originated at the Sitka airport, about 1330. On June 20, 1997, at 1320, the second pilot reported in a telephone conversation with the National Transportation Safety Board (NTSB) investigator-in-charge (IIC), he was preparing the first pilot and the passenger for a CFR Part 135 check ride to be conducted in a float equipped airplane. The second pilot is the chief pilot for Mountain Aviation. The second pilot, seated in the right front seat, stated he briefed the first pilot about the planned training maneuver that was a simulated engine failure after takeoff from the water. Following a takeoff with 20 degrees of flaps selected, the second pilot pulled the engine throttle to idle about 60 to 100 feet above the water. The first pilot, seated in the left front seat, lowered the nose of the airplane and descended for landing. The first pilot landed the airplane on the water in a level attitude but with an excessive rate of descent. The front float strut attach points separated from the fuselage and the front of the fuselage pivoted downward, coming to rest on the front float spreader bar. The airplane received wrinkling damage to the fuselage aft of the float attach points and under the front doors. The propeller struck the front portion of one float.