Chapter $8-$ Fair Value Measurements in the Codification $($exercises $4,5,8,11,13$ and $16$ in your text$)$

Exercises to Improve Your Familiarity with Guidance in ASC $820.$ Respond to the following, citing your sources for all responses.

$4.$ Briefly summarize, then explain the significance of$,$ par. $15-1($scope$)$ of ASC $820-10($Fair Value Measurement$).$

$5.$ If a transaction takes place under duress, what impact might this have on using the transaction price to measure fair value?

$8.$ An investor owns a $10\%$ interest in a publicly traded company. In measuring fair value of this investment, should the investor adjust the fair value to reflect the fact that this position would be too large to sell in a day $($without negatively impacting the share price$)?$

$11.$ In what level of the fair value hierarchy would an entity categorize a measurement based on quoted prices for similar assets in active markets $($such as recent trade prices of similar debt securities$)?$

Other Fair Value Measurement Research Questions $($using other Codification Topics and Sources$)$

$13.$ In determining whether goodwill must be tested for impairment, what must be performed first $-$ a qualitative test or a quantitative test? Explain.

$16.$ Using EY's Financial Reporting Developments publication, Fair Value Measurement, look for the discussion of transportation costs, in the context of applying the "exit price notion" to fair value measurements. If a commodity must be shipped in order to be sold in its principal market, should those shipping costs be considered in measuring the asset' fair value? Explain.