On November 30, 2001, approximately 1400 central standard time, a Cessna 152 airplane, N95565, registered to and operated by the Texas State Technical College(TSTC), of Waco, Texas, was substantially damaged during a forced landing following a loss of engine power near Perry, Texas. The flight instructor and the student pilot receiving instruction were not injured. Visual meteorological conditions prevailed and a company VFR flight plan was filed for the 14 Code of Federal Regulations Part 91 instructional flight. The local flight originated from the TSTC Waco Airport, Waco Texas, at 1330. According to information reported by the flight instructor and in the enclosed Pilot/Operator Aircraft Accident Report (NTSB Form 6120.1/2) the flight instructor initiated a simulated engine failure at altitide by reducing the throttle to idle. The flight instructor added that at about 500 feet AGL, he instructed the student pilot to recover and initiate a go-around. As the pilot added power, the engine lost power and the flight instructor took over the controls to attempt to restart the engine. The flight instructor elected to continue the approach to the previously selected field. Soon after touchdown, the nose landing gear sank into the soft ground and the airplane nosed over coming to rest in the inverted position. Examination of the airplane revealed structural damage to the empenage, the engine firewall and the landing gear assembly. The aircraft was recovered to the operator's maintanenace facilities to facilitate further testing and examination. A new propeller was installed and the engine was started and operated without further problems. The reason for the loss of engine power could not be determined.