INTANGIBLE ASSETs 5. In 2012, Jackson Pharmaceutical Company began a massive research and development project to create a new drug to mitigate the side effects of peanut allergies in children. The project was wildly successful and resulted in Jackson obtaining FDA approval for the drug and a related patent in 2016. From the start of the project through the end of 2016, Jackson incurred a total of Si3.7 billion of related costs including s7.0 billion of research costs, 56.6 billion of development costs, and S0. 1 billion of legal fees to obtain the patent. On December 31, 2016, an external appraiser valued the patent at $15.0 billion. Assume that Jackson prepares annual financial statements and has a December 3 i fiscal year end. a. At what amount will the patent appear in Jackson's balance sheet at December 31, 2016, under U.S. GAAP? (2 points) b. At what amount will the patent appear in Jackson's balance shet at December 31,2016, under IFRS? Jackson's balance sheet at December 31, 2016, under IFRS? (2 points) INTANGIBLE ASSETs 5. In 2012, Jackson Pharmaceutical Company began a massive research and development project to create a new drug to mitigate the side effects of peanut allergies in children. The project was wildly successful and resulted in Jackson obtaining FDA approval for the drug and a related patent in 2016. From the start of the project through the end of 2016, Jackson incurred a total of Si3.7 billion of related costs including s7.0 billion of research costs, 56.6 billion of development costs, and S0. 1 billion of legal fees to obtain the patent. On December 31, 2016, an external appraiser valued the patent at $15.0 billion. Assume that Jackson prepares annual financial statements and has a December 3 i fiscal year end. a. At what amount will the patent appear in Jackson's balance sheet at December 31, 2016, under U.S. GAAP? (2 points) b. At what amount will the patent appear in Jackson's balance shet at December 31,2016, under IFRS? Jackson's balance sheet at December 31, 2016, under IFRS? (2 points)