Spencer, CPA, has been engaged to audit the fair value measurements of Christensen & Son, a high-tech company in the Midwest. During the audit, Spencer must obtain evidence that management of Christensen & Son has appropriately valued the following two accounts:

1. Available-for-Sale Stock Portfolio, containing investments in Fortune 100 compan stocks.

2. Stock compensation expense related to stock options granted to Christensens employees as valued by the Black-Scholes option-pricing model. Christensens stock is largely held by the owners and neither the companys stock nor the related stock options are actively traded.

Required:

For each account, complete the following:

a. Identify the fair value inputs to the value of each account.