Level 5 of the Fair Value Hierarchy Estimates

question 12

Multiple Choice

Level 5 of the fair value hierarchy estimates:

• A) Market values based on quoted prices for a similar asset, with adjustments made for differences between the subject asset and the similar asset.
• B) Market values based on mathematical models that use directly-related market variables as indicators of market value.
• C) Market values based on mathematical models that use indirectly-related market variables as indicators of market value.
• D) Market values based on mathematical models that use internal business inputs as indicators of market value.

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Definitions:

Informational Return

A tax document that entities use to report certain types of payments made to the IRS, like income from self-employment or dividends.

Internal Revenue Service

The U.S. federal agency responsible for administering and enforcing the tax laws and collecting taxes.

Corporate Officer

Executives who are appointed by a corporation's board of directors to manage the corporation's affairs.

Day-To-Day Operations

The regular, routine activities necessary for a business or organization to function effectively.