Question: Meerkat Industries would like to determine the fair value of its manufacturing facility in London, Ontario. The facility consists of land, building, and manufacturing equipment.

Meerkat Industries would like to determine the fair value of its manufacturing facility in London, Ontario. The facility consists of land, building, and manufacturing equipment.
Instructions
(a) Identify some of the considerations that are involved in a fair value measurement.
(b) Explain the various levels of input in the fair value hierarchy.
(c) Using the fair value hierarchy, discuss the level 1, 2, and 3 types of inputs that Meerkat could use to value each asset as well as its facility altogether.

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a At a minimum an entity must determine the particular asset being measured its condition specific nature location etc whether the assets will be valued by the market as a group or on a standalone bas... View full answer

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