Question: Determining Fair Value Measurement In preparing its December 3 1 year - end financial statements, Diego Enterprises is measuring the fair value of its 1

Determining Fair Value Measurement
In preparing its December 31 year-end financial statements, Diego Enterprises is measuring the fair value of its 100 share investment in Javier Inc., originally purchased at $60 per share at January 1 of this year. Shares of Javier Inc. are actively traded on two stock exchanges. The quoted stock price and transactions cost per share are $64 and $2 for Exchange One and $66 and $5 for Exchange Two, respectively, on December 31.
a. Determine the fair value measurement of the investment in Javier Inc. if Exchange One is determined to be the principal market.
The fair value measurement in first case if Exchange One is the principal market.

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