Explanation Fair value: The FASB and IASB stated fair value as “the price that is received for selling an asset or the price that is paid to transfer a liability in an orderly transaction between market participants at the measurement date”. The fair value can be known at the date in which the company acquires an asset by payment of cash. Justification for incorrect option a: Fair value based on level 3 inputs cannot be calculated if both estimated market value and present value are unavailable. Therefore, it is an incorrect option. Justification for the incorrect option b: Fair value based on level three inputs cannot be calculated only with the availability of present value without the estimated market value. Therefore, it is an incorrect option. Justification for the incorrect option c: Fair value based on level three inputs cannot be calculated only with the availability of estimated market value without the present value. Therefore, it is an incorrect option. Justification for the correct option d: Level 3: Inputs are the estimations and assumptions made by the company for computing fair value of an asset and liability...

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN: 9781337788281

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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Chapter 4, Problem 3MC

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State the option that is used to ascertain fair value based on level 3 inputs.

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Ch. 4 - What is the accounting equation? The balance sheet...Ch. 4 - Prob. 2GI Ch. 4 - How does the balance sheet at the end of an...Ch. 4 - What does recognition mean in accounting?Ch. 4 - Prob. 5GI Ch. 4 - Prob. 6GI Ch. 4 - What is equity? How is equity determined?Ch. 4 - What is a mixed attribute measurement model? Why...Ch. 4 - Identify at least five alternatives for measuring...Ch. 4 - Identify at least three alternatives for measuring...

Ch. 4 - Prob. 11GI Ch. 4 - Prob. 12GI Ch. 4 - Prob. 13GI Ch. 4 - Prob. 14GI Ch. 4 - Prob. 15GI Ch. 4 - Prob. 16GI Ch. 4 - Define (a) common stock, (b) additional paid-in...Ch. 4 - Prob. 18GI Ch. 4 - Prob. 19GI Ch. 4 - What are investments by owners? Distributions to...Ch. 4 - What accounting policies are disclosed in the...Ch. 4 - Give several examples of financial instruments and...Ch. 4 - Prob. 23GI Ch. 4 - Prob. 24GI Ch. 4 - Prob. 25GI Ch. 4 - Prob. 26GI Ch. 4 - Prob. 27GI Ch. 4 - Prob. 28GI Ch. 4 - Prob. 29GI Ch. 4 - Prob. 30GI Ch. 4 - Prob. 31GI Ch. 4 - Prob. 32GI Ch. 4 - Prob. 33GI Ch. 4 - Prob. 34GI Ch. 4 - A donated fixed asset (from a governmental unit)...Ch. 4 - Prob. 2MC Ch. 4 - Prob. 3MC Ch. 4 - On October 2, 2020, a company borrowed cash and...Ch. 4 - Prob. 5MC Ch. 4 - Rent revenue collected 1 month in advance should...Ch. 4 - Prob. 7MC Ch. 4 - Prob. 8MC Ch. 4 - Which of the following should be disclosed in the...Ch. 4 - Prob. 10MC Ch. 4 - Prob. 1RE Ch. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Based on the information in RE4-2 and RE4-3,...Ch. 4 - Prob. 5RE Ch. 4 - Oz Corporation has the following assets at...Ch. 4 - Prob. 7RE Ch. 4 - Prob. 8RE Ch. 4 - Scarecrow Inc. issues 50,000 shares of 2 par value...Ch. 4 - Tinman Corporation reports the following balances...Ch. 4 - Prob. 1E Ch. 4 - Plant and Equipment Your analysis of Moen...Ch. 4 - GRAF CORPORATION Shareholders Equity Section of...Ch. 4 - Prob. 4E Ch. 4 - Classifications on Balance Sheet The balance sheet...Ch. 4 - Balance Sheet Baggett Companys balance sheet...Ch. 4 - Prob. 7E Ch. 4 - Balance Sheet Calculations Dawson Companys balance...Ch. 4 - Prob. 9E Ch. 4 - Correction of Balance Sheet On December 31, 2019,...Ch. 4 - Prob. 11E Ch. 4 - Prob. 12E Ch. 4 - Classifications on Balance Sheet The current...Ch. 4 - Balance Sheet without Amounts The following is an...Ch. 4 - Prob. 3P Ch. 4 - Prob. 4P Ch. 4 - Balance Sheet Calculations Cornerstone Development...Ch. 4 - Prob. 6P Ch. 4 - Complex Balance Sheet Presented below is the...Ch. 4 - Analyzing Starbuckss Balance Sheet Disclosures...Ch. 4 - Prob. 9P Ch. 4 - Balance Sheet The following is a list (in random...Ch. 4 - Balance Sheet The following is an alphabetical...Ch. 4 - Balance Sheet from Adjusted Trial Balance The...Ch. 4 - Balance Sheet and Notes Listed here in random...Ch. 4 - Comprehensive: Balance Sheet, Schedules, and Notes...Ch. 4 - Use following formation for P4-15 and P4-16:...Ch. 4 - Ratios Analyses: McCormick Refer to the...Ch. 4 - Prob. 17P Ch. 4 - Use the following information for P417 and P418:...Ch. 4 - Prob. 1C Ch. 4 - It is the end of 2019 and you are an accountant...Ch. 4 - Prob. 3C Ch. 4 - Valuation of Assets and Stock A friend has come to...Ch. 4 - It is February 16, 2020, and you are auditing...Ch. 4 - You are the accountant for Speedy Company and are...Ch. 4 - Prob. 7C Ch. 4 - Prob. 8C Ch. 4 - Situation You are the assistant accountant for...

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