Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 408

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 2
Chunk 408
---
 of ASC Subtopic 740-10, “Accounting for Uncertainty in Income Taxes.” The ASC prescribes
a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest, and penalties, accounting
in interim periods, disclosure, and transition. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions
(tax contingencies). The first step evaluates the tax position for recognition by determining if the weight of available evidence indicates
it is more likely than not that we will sustain the position on audit, including resolution of related appeals or litigation processes.
The second step measures the tax benefit as the largest amount of more than 50% likely of being realized upon ultimate settlement. The
Company did not identify any material uncertain tax positions on returns that have been filed or that will be filed. The Company did
not recognize any interest or penalties for unrecognized tax provisions during the years ended December 31, 2024 and 2023, nor were any
interest or penalties accrued as of December 31, 2024 and 2023. To the extent the Company may accrue interest and penalties, it elects
to recognize accrued interest and penalties related to unrecognized tax provisions as a component of income tax expense.

Fair
value measurements

The
Company adopted ASC 820, “Fair Value Measurement,” which defines fair value as the exchange price that would be received
to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. The valuation techniques maximize the use of observable
inputs and minimize the use of unobservable inputs.

    F-14

Mentor
Capital, Inc.

Notes
to Consolidated Financial Statements

December
31, 2024 and 2023

The
Fair Value Measurements and Disclosure Topic establishes a fair value hierarchy, which prioritizes the valuation inputs into three broad
levels. These three general valuation techniques that may be used to measure fair value are as follows: Market approach (Level 1) –
which uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.
Prices may be indicated by pricing guides, sale transactions, market trades, or other sources. Cost approach (Level 2) – which
is based on the amount that currently would be required to replace