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Which set of inputs should the company use

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ABC plc is valuing a specialized asset at fair value. To obtain the fair value amount, ABC plc can use:

i) estimated inputs based on the company's projections of asset use, or

ii) inputs based on a similar asset with an observable market price.

Problem 1: According to the fair value hierarchy, which level do inputs i) and ii) belong to?

Problem 2: Which set of inputs should the company use? Why?

Reference no: EM132979431

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