Didericksen Company has an investment portfolio containing three securities. Details about each of the securities are given below.
Security 1: 1,000 shares purchased last year for $20 per share. At the beginning of this year, the shares were trading at $25 per share. At the end of this year, the shares were trading at $27 per share. The shares of Security 1 trade actively on the New York Stock Exchange. Didericksen holds these securities with the intent to make money through short-term fluctuations in price; they are classified as trading securities.
Security 2: 30 bonds ($1,000 face value) purchased last year at 98.5. At the beginning of this year, the bonds were trading at 101.4. The bonds are thinly traded, so no quoted price is available near the end of this year. However, use of matrix pricing based on the trading prices of similar bonds indicates that the estimated price of the bonds is 97.8 at the end of this year. Didericksen classifies these securities as available for sale.
Security 3: 500 shares in a real estate investment trust. Didericksen purchased 300 shares last year for $15 per share. At the beginning of this year, the estimated fair value of these shares was $18. During the year, Didericksen purchased another 200 shares at $16 per share. Didericksen classifies this as an available-for-sale investment. The shares in this real estate investment trust are privately held, and transactions are infrequent. As of the end of the year, Didericksen has used its own analysis to estimate the price per share to be $12.
Prepare the Level 1, Level 2, and Level 3 disclosures required under SFAS No. 157.