Problem

On March 7, 2012, Celgene Corporation acquired all of the outstanding stock of Avila The...

On March 7, 2012, Celgene Corporation acquired all of the outstanding stock of Avila Therapeutics, Inc. in exchange for $352.2 million in cash plus contingent consideration. Referring to Celgene’s 2012 financial statements answer the following questions regarding the Avila Therapeutics acquisition.

How did Celgene account for the in-process research and development product rights acquired in the combination?

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