A company entering liquidation has reported assets with a book value of $900,000 and a liquidation value of $600,000, and previously unreported customer lists with a fair value of $50,000. During the next month, it sells assets for $200,000. Remaining assets have a fair value of $460,000. The company's statement of changes in net assets in liquidation for the month reports a remeasurement gain or loss on assets of:

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The remeasurement gain or loss is calculated by comparing the fair value before and after the asset sale. Initially, the fair value of assets was $650,000 ($600,000 + $50,000). After selling assets for $200,000, the remaining assets have a fair value of $460,000. The expected value after the sale would be $450,000 ($650,000 - $200,000), so the actual fair value being $460,000 results in a $10,000 gain.

A Company Entering Liquidation Has Reported Assets with a Book