Determine the transaction price of the arrangement for


Blair Biotech enters into a licensing agreement with pang Pharmaceutical for a drug under development. Blair will receive a payment of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Blair determines it is 90% likely that the drug will gain approval and a 10% chance of denial. (a) Determine the transaction price of the arrangement for Blair Biotech (b) Assuming that regulatory approval was granted on December 20, 2014, and that Blair received the payment from Pang on January 15, 2015, prepare the journal entries for Blair.

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Basic Statistics: Determine the transaction price of the arrangement for
Reference No:- TGS01348771

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