In an acquisition involving a total enterprise value of $25 million, the acquired company owns three ships. Management has introduced the audit team to a ship broker who stated that, based on his knowledge and experience as a ship broker, that the value of the ships is $2.5 million each. Which of the following is most accurate given the fact pattern above?

A. The audit team needs more information.

B. The $7.5 million carrying value for the ships would be depreciated over the economic life of the ships and would be subject to impairment testing per the applicable ASC guidelines for tangible assets

C. The audit team would be required to perform a valuation to assess whether the $7.5 million value was correct.

D. The $7.5 million would be identified as a Level 2 Fair Value measure.