Exercise 18-7 Crane Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Crane will receive a payment of $10,100,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Crane determines it is 80% likely that the drug will gain approval and a 20% chance of denial. Determine the transaction price of the arrangement for Crane Biotech. Transaction price Assuming that regulatory approval was granted on December 20, 2017, and that Crane received the payment from Pang on January 15, 2018, prepare the journal entries for Crane. The license meets the criteria for point-in-time revenue recognition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit