4. Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

4. Fair Value Measurements

Note 4. Fair Value Measurements

ASC Topic 820 established a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy defined by the standard are as follows:

· Level 1: Quoted prices are available in active markets for identical assets or liabilities;

· Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or

· Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that are accounted for at fair value.

			December 31, 2012
Recurring Fair Value Measures Assets:	Level 1		Level 2		Level 3		Total
Marketable securities	$	31,467		-		-	$	31,467
Liabilities:
None		-		-		-		-

			December 31, 2011
Recurring Fair Value Measures Assets:	Level 1		Level 2		Level 3		Total
Marketable securities	$	74,787		-		-	$	74,787
Liabilities:
None		-		-		-		-

The Company’s financial instruments relate to its trading marketable securities, which are valued using quoted market prices. Adjustments to fair value are recorded in the consolidated statement of income.