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

$8450000.

$7605000.

$845000.

$0 until approval is received.