P Company manufactures wireless transponders for satellite applications. P has recently acquired S Company, which is primarily knows as its software communications development but also manufactures a specialty transponder under the trade name X that competes with one of Ps products. P will now discontinue X and projects that its own product line will see a market share increase. Nonetheless, Ps management will maintain the rights to the X trade name as a defensive intangible asset to prevent its

use by competitors, despite the fact that its highest and best use would be to sell the trade name. P estimates that the trade name has an internal value of $1.5 million but, if sold, would yield $2 million.

Instruction: Answer the following questions with supporting citations from FASB ASC:

3. According to ACS Topic 820, Fair Value Measurement, what value premise (in-use or in-exchange) should P assign to the X trade name in its consolidated financial statements?