Answer:
1.) Transaction price of arrangement for Blair Biotech is $ 7,900,000
2.) Journal Entry
Date | Partculars | Debit ($) | Credit ($) |
12/20/2020 | Accounts receivable | $7,900,000 | |
License Revenue | $7,900,000 | ||
(Being approval granted) | |||
1/15/2021 | Cash | $7,900,000 | |
Accounts Receivable | $7,900,000 | ||
(Being payment received) |
Sheffield Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Sheffield...
Sweet Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Sweet will receive a payment of $9,400,000 if the drug receives regulatory approval. Based on prior experience in the drug- approval process, Sweet determines it is 70% likely that the drug will gain approval and a 30% chance of denial. Determine the transaction price of the arrangement for Sweet Biotech. Transaction price $ Assuming that regulatory approval was granted on December 20, 2020, and that...
Exercise 18-7 Blossom Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blossom will receive a payment of $12,500,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blossom determines it is 70% likely that the drug will gain approval and a 30% chance of denial. Determine the transaction price of the arrangement for Blossom Biotech. Transaction price $ Assuming that regulatory approval was granted on December 20, 2017, and...
Exercise 18-7 Buffalo Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Buffalo will receive a payment of $10,900,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Buffalo determines it is 75% likely that the drug will gain approval and a 25% chance of denial. Determine the transaction price of the arrangement for Buffalo Biotech. Transaction price s SHOW LIST OF ACCOUNTS LINK TO TEXT Assuming that regulatory approval...
On November 1, 2020, Sheffield Company adopted a stock-option plan that granted options to key executives to purchase 21,300 shares of the company’s $11 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the...