FV of IPR&D is 1 billion dollars??

LO 1, 2, 4, 5 Prepare the summary journal entry to record the valuation adjustments for fiscal 2020. Ignore any impacts on income. P2.11 Earnings Contingency, In-Process R&D, Bargain Purchase On January 2, 2018. Fiser, Inc. emange acquired Vixen Pharmaceuticals for $1.25 billion cash in a merger. Vixen had two promising products for treating common infections under review by the U.S. Food and Drug Administration. The balance sheets of Fiser and Vixen reflect data immediately prior to the acquisition. Fair value information appears for Vixen's reported assets and liabilities. MBO Fiser, Inc. Book Value Vixen Pharmaceuticals Book Value Fair Value (in thousands) Current assets Property, plant and equipment Patents Total assets. $ 5,000,000 60,000,000 10,000,000 $75,000,000 $35,000,000 25,000,000 15,000,000 $75,000,000 Liabilities. Capital stock. Retained earnings Total liabilities and equity $ 200,000 10,000,000 500,000 $10,700,000 $ 7,850,000 5,000,000 (2,150,000) $10,700,000 $ 200,000 5,000,000 3,000,000 $8,200,000 $7.850,000 R&D expen $1 billion of the purchase price was allocated to previously unreported in-process research and devel- opment attributed to Vixen's products under development. The purchase price was low due to Vixen's poor performance in previous years - Vixen reported a retained earnings deficit of $2.15 billion as of the date of acquisition. To close the deal, Fiser agreed to pay the former owners of Vixen $2 for every dollar of total revenue above $50 million reported on sales of Vixen's products over the next two years. This payment, if made at all, would occur at December 31, 2019. Fiser expects that there is only a 10 percent chance the payment will be made, as follows: Total expected revenue on Vixen's products, 2018-2019 Probability Below $50 million $60 million $80 million 0.90 0.08 0.02 Required