Company: MNTR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001620
Chunk: 125

Company: Mentor Capital, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 125
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 realized.

The
Company applies the provisions of ASC 740, “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.

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 the service capacity of an asset
(replacement cost); and the Income approach (Level 3) – which uses valuation techniques to