1. A company entering liquidation has reported assets with a book value of $900,000 and a liquidation value of $650,000. It also has previously unreported customer lists with a fair value of $50,000. Estimated liquidation costs are $40,000. The companys statement of net assets in liquidation reports total assets of:

a. $660,000

b. $900,000

c. $700,000

d. $650,000

2. 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 companys statement of changes in net assets in liquidation for the month reports a remeasurement gain or loss on assets of:

a. $240,000 loss

b. $60,000 gain

c. $140,000 loss

d. $10,000 gain