Business, 20.02.2020 03:39 terrancebest

Crane Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Crane will receive a payment of $10,100,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Crane determines it is 80% likely that the drug will gain approval and a 20% chance of denial.

Determine the transaction price of the arrangement for Crane Biotech.

Transaction price $_ _ _

Assuming that regulatory approval was granted on December 20, 2017, and that Crane received the payment from Pang on January 15, 2018, prepare the journal entries for Crane. The license meets the criteria for point-in-time revenue recognition.

Date Account Titles and Explanation Debit Credit
_ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:20

25. kerry company plans to sell 200,000 units of finished product in july and anticipates a growth rate in sales of 5% per month. the desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. there are 150,000 finished units in inventory on june 30. kerry company's production requirement in units of finished product for the three-month period ending september 30 is: a. 712,025 units b. 630,500 units c. 664,000 units d. 665,720 units

Answers: 3

Answer

Business, 21.06.2019 23:30

Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry?

Answers: 3

Answer

Business, 22.06.2019 10:00

Your uncle is considering investing in a new company that will produce high quality stereo speakers. the sales price would be set at 1.5 times the variable cost per unit; the variable cost per unit is estimated to be $75.00; and fixed costs are estimated at $1,200,000. what sales volume would be required to break even, i.e., to have ebit = zero?

Answers: 1

Answer

Business, 22.06.2019 16:30

Summarize the specific methods used by interest groups in order to influence governmental decisions making in all three branches of government. provide at least two examples from each branch.

Answers: 3

Answer

You know the right answer?

Crane Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under developmen...

Questions