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Sindrei [870]
3 years ago
12

Whispering enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Whispering will receive a pa

yment of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Whispering determines it is 90% likely that the drug will gain approval and a 10% chance of denial.
Required:
1. Determine the transaction price of the arrangement for Whispering.
2. Assuming that regulatory approval was granted on December 20, 2020, and that Whispering received the payment from Pang on January 15, 2021, prepare the journal entries for Whispering. The license meets the criteria for point-in-time revenue recognition.
Business
1 answer:
777dan777 [17]3 years ago
8 0

Answer:

Transaction price of the arrangement for Blair Biotech is $10,000,000.

2) Journal Entries for Blair.

Date Accounts Debit$ Credit$

12/20/2017 Accounts Receivable $10,000,000

License Revenue $10,000,000

01/15/2018 Cash $10,000,000

Accounts Receivable $10,000,000

Explanation:

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In your own opinion, what is the advantages and disadvantages of having a business website​
dexar [7]

Answer:

An advantage is makin money but also You have to make your life seem perfect

Explanation:

5 0
3 years ago
Suppose that there are no storage costs for crude oil and the interest rate for borrowing or lending is 5% per annum. How could
mario62 [17]

Answer:

$4.50

Explanation:

In order to make a profit from the futures contracts, it would be appropriate to take a long position in the  June futures contract(buy) and take a short position in the December futures contract.

The investor would borrow $60 today which would necessitate paying back $60 plus a half-year in interest payment.

loan repayment=$60*(1+5%/2)=$ 61.50  

In December, sell crude oil at $66 and repay the loan principal and interest

profit=$66-$61.50=$4.50

5 0
3 years ago
Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected
son4ous [18]

Answer:

Correct option is (D)

Explanation:

Given:

Purchase price of copyright = $50,000

Expected useful life = 5 years

Annual depreciation expense as per straight line method:

= Purchase price ÷ useful life

= 50,000 ÷ 5

= $10,000

Only useful life is considered and not legal life.

Carrying value of asset at the end of year = Book value of asset - annual depreciation

Carrying value of copyright at then end of first year = 50,000 - 10,000 = $40,000

Carrying value of copyright at then end of second year = 40,000 - 10,000 = $30,000

5 0
4 years ago
how much time does a bike with an acceleration of 2ms2 takes to increase its velocity from 10ms-2 to 30ms-2​
aniked [119]

Answer:

Time, t = 10 seconds.

Explanation:

<u>Given the following data;</u>

Initial velocity, u = 10 m/s

Final velocity, v = 30 m/s

Acceleration, a = 2 m/s²

To find the time, we would use the first equation of motion;

v = u + at

Where;

  • v is the final velocity.
  • u is the initial velocity.
  • a is the acceleration.
  • t is the time measured in seconds.

Making time, t the subject of formula, we have;

t = \frac{v - u}{a}

Substituting into the equation, we have;

t = \frac{30 - 10}{2}

t = \frac{20}{2}

<em>Time, t = 10 seconds.</em>

4 0
3 years ago
College students often buy cheap pizza because it is more affordable. suppose after graduating, college students find high-payin
il63 [147K]
The demand for cheap pizza will <span>decrease because demand for cheap pizza is negative related to income.
a relation could be considered as negative if the correlation between two events opposing one another. As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased</span>
4 0
4 years ago
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