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XYZ spends $50 million on R&D and spends $100,000 for patent filing fees for its new discovery. XYZ creates a new prescription medication that arises
XYZ spends $50 million on R&D and spends $100,000 for patent filing fees for its new discovery. XYZ creates a new prescription medication that arises directly from this patent. The Food and Drug Administration (FDA) has approved the new drug for immediate sale. A consensus of professional analysts estimates that the drug will have sales of $1.5 billion for the next ten years; and this is a conservative estimate. What amount should XYZ report on its balance sheet?
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