Apply Fair Value Measurement Practice Test

A public company measures a foreign currency forward contract at fair value, presented in Derivative Assets/Liabilities. The valuation uses observable forward exchange rates and interest rate curves from commonly quoted markets, with no significant unobservable adjustments. What level of the fair value hierarchy does the input belong to?

A private company acquired a customer relationship intangible asset in a business combination and measures it at fair value at the acquisition date. There is no active market for the intangible, and management estimates fair value using an income approach based on projected attrition, forecasted cash flows, and a discount rate that incorporates market participant risk assumptions. Which assumption most significantly affects the fair value measurement?