In September 2020, Biotech Pharma enters into a licensing arrangement with Clover Pharmaceuticals for a drug under

Fantastic news! We've Found the answer you've been seeking!

Question:

In September 2020, Biotech Pharma enters into a licensing arrangement with Clover Pharmaceuticals for a drug under development that gives Clover to the right to use Biotech’s patent to manufacture and sell the drug under the license given by Biotech Pharma. Biotech will receive a payment of $25,000,000 if the drug is approved by FDA. Based on past experience in drug approval process, Biotech determines that it is 80% likely that the drug will gain approval with 20% change of denial.

1. Determine the transaction price of the revenue arrangement for Biotech.

2. Prepare journal entries for Biotech on December 10, 2020 and January 31, 2021.

Posted Date: Nov 10, 2021 09:30 PM

See More Questions

Required: 1. Prepare journal entries to record the December transactions in the General Journal Tab . Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid...
Jerris Jackets produces an item that gives rise to the following activities: Activity Hours Processing (two departments) ....... 45.0 Inspecting ................. 3.0 Rework ..................... 7.5...
Describe the mass-spring chains that gives rise to the following potential energy functions, and find their equilibrium configuration: (a) 3u21 - 4u1u2 + 3u22 + u1 - 3u2 (b) 5u21 - 6u1u2 + 3u22 + 2u2...
Paolo was recently promoted over Yasmine, and he now works on the sixth floor. Yasmine used to eat lunch with a coworker on the sixth floor, but lately she has been eating in the cafeteria to avoid...
Studies that compare treatments for chronic medical conditions such as headaches can use the same subjects for each treatment. This type of study is commonly referred to as a crossover design. With a...
1. Can you use the job characteristics model (JCM) to redesign the job of the trash collector to be internally motivating? How? 2. Assume that the trash collection job is not internally motivating....
Consider the project contained in problem 14.7 in chapter 14. a. Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day, average collection amount,...
The checking accounts of Sun Bank are categorized by the age of account and the account balance. Auditors will select accounts at random from the following 1000 accounts (numbers in the table are the...
1. How the singly linked lists can be represented? 2. How the doubly linked list can be represented? 3. What are benefits of ADT? 4. When singly linked list can be represented as circular linked...
The press shown is used to emboss a small seal at E. Knowing that P = 250 N, determine (a) The vertical component of the force exerted on the seal, (b) The reaction at A. 400 mm 15 200 mm 20 G0
5. When designing register file, we used multiplexer to read from a specific register of that register file. However, to write in the register file, we didn't use demultiplexer. Why ?
Do government agencies need to complement their workforce diversity approaches emphasizing management and legal compliance with approaches emphasizing engagement (of workforce diversity)?Explain
Serial and Parallel communication has changed in recent years in terms of communication of devices. Which method is preferred? Why? Which communication technology do you think will be used more...
Define serval perspectives about workforce diversity .Distinguish between identical treatment and equitable treatment in an organizational setting.
What are the three most relevant workforce diversity categories in South Africa and Brazil? What criteria do you use to determine which workforce diversity categories are the most relevant in South...
Consideration of workforce diversity is a part of HRM.Respond and discuss the following with your classmates and instructor: What comprises workforce diversity? What is the responsibility of the...
The universal life policy will cost Mr Williams substantially more than a term or whole life policy and will earn Randy more commission . Randy has violated ? a) The principle of objectivity b) The...
When an electric field is applied to a shallow bath of vegetable oil, why do tiny bits of thread floating in the oil align with the field like compasses in a magnetic field?
a. For the allowed energies of a particle in a box to be large, should the box be very big or very small? Explain. b. Which is likely to have larger values for the allowed energies: an atom in a...
The molecules in the rods and cones in the eye are tuned to absorb photons of particular energies. The retinal molecule, like many molecules, is a long chain. Electrons can freely move along one...
What was the approximate activity of the plutonium source at the start of the mission? A. $2 \times 10^{21} \mathrm{~Bq}$ B. $2 \times 10^{19} \mathrm{~Bq}$ C. $2 \times 10^{17} \mathrm{~Bq}$...

In September 2020, Biotech Pharma enters into a licensing arrangement with Clover Pharmaceuticals for a drug under

Question:

Expert Answer:

1 Transaction price 25000000 In the given case Probability of approval of ... View the full answer

Students also viewed these accounting questions