Your answer is incorrect Try again Vande Velde Company made

Your answer is incorrect. Try again. Vande Velde Company made three investments during 2017 Where will Vande Velde report these investments in the fair value hierarchy? (1) It purchased 1,000 shares of Sastre Company, a start-up company. X Level 1 Vande Velde made the investment based on valuation estimates from an internally developed model. (2) It purchased 2,000 shares of GE stock, which trades on the NYSE. Level 2 (3) It invested $10,000 in local development authority bonds. Although Level 3 these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bond.

Solution

Answer

1.Level 3 (Because of valuation estimate)

2.Level 1 (Because has already a set value)

3.Level 2 (closely track movement)