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tatiyna
3 years ago
13

Carla Vista Pharmaceuticals entered into a licensing agreement with Zenith Lab for a new drug under development. Carla Vista wil

l receive $8450000 if the new drug receives FDA approval. Based on prior approval, Carla Vista determines that it is 90% likely that the drug will gain approval. The transaction price of this arrangement should be $0 until approval is received. a.$7605000. b.$8450000. c.$845000.
Business
1 answer:
frez [133]3 years ago
7 0

Answer:

Depends on the valuation method, it can be either:

A) $7,605,000

B) $8,450,000

Explanation:

A) If Carla Vista uses the "expected value method", then the transaction price of this arrangement should = $8,450,000 x 90% = $7,605,000

B) If Carla Vista uses the "most likely method", then the transaction price of this arrangement should = $8,450,000

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Swifty Corporation spent $4400 to produce Product 89, which can be sold as is for $5500, or processed further incurring addition
Lady bird [3.3K]

Answer:

Relevant:

$5,500

$1,650

$7,700

Explanation:

The only data irrelevant is the first production cost. <u>The $4,400 is not relevant because it is a sunk cost. It will remain constant in both choices.</u> The other costs and income are relevant because they vary on each decision. The $4,400 should not be a part of the decision making process.

6 0
3 years ago
The trial balance before adjustment of Taylor Swift Inc. shows the following balances.
ale4655 [162]

Answer:

A. Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

B. Dr Bad Debt Expense $2,800

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Explanation:

Preparation of the journal entry for the estimated bad debts

A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense$5,350

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[(4%*90,000)-1,750]

B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

[(5%*90,000)-1,700]

3 0
3 years ago
If the maker of a promissory note fails to pay the note on the due date, the note is said to be A. displacedB. disallowedC. dish
nalin [4]

Answer:

The answer is C: dishonored

Explanation:

When the maker of a promissory notes fails to pay on the due date, the promissory note is called dishonored. With a promissory note, a buyer makes a short-term commitment to pay a supplier for merchandise within a stated period of time and at a certain interest rate. The maker of the note is the party promising to make payment, the payee is the party to whom payment will be made, the principal is the stated amount of the note, and the maturity date is the day the note will be due.

It is called dishonored because the maker made a promess to pay a determined amount in a period of time. By failing at honoring it's word, the note its called dishonored.

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3 years ago
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Answer:

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Customer dissatisfaction arises when the good or service provided by a company does not meet the needs of the consumers. The direct result of this situation is reflected in the quantity demanded of the product in reference, provoking an overload of supply since the buyers start purchasing less every time.

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4 years ago
The economy of china is in transition. what does this mean? investments are determined by state control instead of by private de
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