Read the following Judgement Case prompt:Assume that Pfizer, a large research-based pharmaceuticalcompany, enters into...Read...

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Accounting

Read the following Judgement Case prompt:
Assume that Pfizer, a large research-based pharmaceuticalcompany, enters into a contract with a start-up biotechnologycompany called HealthPro and promises to: Grant HealthPro theexclusive rights to use Pfizer’s Technology A for the life of itspatent. The license gives HealthPro the exclusive right to market,distribute, and manufacture Drug B as developed using Technology A.Assign four full-time equivalent employees to perform research anddevelopment services for HealthPro in a specially designated Pfizerlab facility. The primary objective of these services is to receiveregulatory approval to market and distribute Drug B usingTechnology A. HealthPro is required to use Pfizer’s lab to performthe research and development services necessary to develop Drug Busing Technology A, because the expertise related to Technology Ais proprietary to Pfizer and not available elsewhere.
After reading the above prompt, respond to the following:
Discuss the 2016 financial statement presentation of each of theabove events. Do not consider earnings per share disclosures. Whatparts of this contract are separate performance obligations?Explain your reasoning for each obligation.

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WHEN A PROMISE IS LEGALLY ENFORECEABLE BECOMES A CONTRACT IN THE GIVEN QUESTION THERE IS A CONTRACT BETWEEN PFIZER AND HEALTHPRO TO GRANT HEALTHPRO THE EXCLUSIVE RIGHT TO USE PFIZERS See Answer

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In: AccountingRead the following Judgement Case prompt:Assume that Pfizer, a large research-based pharmaceuticalcompany, enters into...Read the following Judgement Case prompt:Assume that Pfizer, a large research-based pharmaceuticalcompany, enters into a contract with a start-up biotechnologycompany called HealthPro and promises to: Grant HealthPro theexclusive rights to use Pfizer’s Technology A for the life of itspatent. The license gives HealthPro the exclusive right to market,distribute, and manufacture Drug B as developed using Technology A.Assign four full-time equivalent employees to perform research anddevelopment services for HealthPro in a specially designated Pfizerlab facility. The primary objective of these services is to receiveregulatory approval to market and distribute Drug B usingTechnology A. HealthPro is required to use Pfizer’s lab to performthe research and development services necessary to develop Drug Busing Technology A, because the expertise related to Technology Ais proprietary to Pfizer and not available elsewhere.After reading the above prompt, respond to the following:Discuss the 2016 financial statement presentation of each of theabove events. Do not consider earnings per share disclosures. Whatparts of this contract are separate performance obligations?Explain your reasoning for each obligation.