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.
(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.