SF Corporation has a mortgage-back security that is traded in an open market. Due to recent poor market performance (characterized by widen bid-ask spread and low trading volume), SF flow estimated internally. Determine the appropriate classification in the fair value hierarchy for 6. HM Corporation issued to certain employees 1 million shares in stock option awards on 1/1/2014 $15 million, percentage vested = 50%. If CNI-315 million, percentage vested: 100% HM believes the market price used as the security's fair value is no longer reliable. SF therefore changed the valuation approach to income approach and applied inputs such as the future cash the security and provide support for your conclusion.