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Answer for both scenario 1 and scenario 2 Scenario 1: A pharmaceutical company licenses a drug formula to another company for three years for fixed

Answer for both scenario 1 and scenario 2

Scenario 1: A pharmaceutical company licenses a drug formula to another company for three years for fixed consideration of $50,000.

Scenario 2: An entity licenses to licensee for fixed consideration of $50,000 the right to use its trademark for the next three years.

How should licensor recognize revenue i.e., over time or at a point-in-time ? Explain.

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