You are the senior staff accountant for a local stainless$-$steel tank company, Tanks$4$You. The tanks are sold internationally. Tanks$4$You company sells three different sizes of dairy tanks $1,000-$liter, $5,000-$liter, and $10,000-$liter tanks. These three tank sizes have different popularity based on the region they are sold $($figure $1).$ Tanks$4$You is currently buying all of the dairy tank inventory of a failing business $($figure $2).$ The dairy tank market is active for each region, and each region has a different average price in the market $($figure $3).$ The controller has tasked you with determining the fairvalue of the inventory Tanks$4$You is buying.

Percent Sold by Region Price by Region

Tank Type North America Europe South America Number Bought North America Europe South America

$1,000$ Liter $10\%20\%70\%30$ $ $2,000$ $ $2,300$ $ $1,900$

$5,000$ Liter $40\%55\%5\%25$ $ $4,000$ $ $4,300$ $ $4,500$

$10,000$ Liter $80\%10\%10\%5$ $ $10,000$ $ $9,800$ $ $11,500$

$1.$ Using the FASB codification determine the fair value of the inventory being sold.

$2.$ Cite the ASC sections that are relevant to the answer.