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Pfizer , a large research based pharmaceutical company, enters into a contract with a start up biotechnology company called HealthPro and promises:1. To grant HealthPro the exclusive rights to use Pfizer's Technology A for the life of its patent. The license gives HealthPro the exclusive right to market, distribute, and manufacture Drug B as developed using Technology A.2. To assign four full time equivalent employees to perform research and development services for HealthPro in a specially designated Pfizer lab facility. The primary objective of these services is to receive regulatory approval to market and distribute Drug B using Technology A.HealthPro is required to use Pfizer's lab to perform the research and development services necessary to develop Drug B using Technology A, because the know how and expertise related to Technology A are proprietary to Pfizer and not available elsewhere.
Required:Determine which parts of this contract are separate performance obligations. Explain your reasoning for each obligation.
Financial Statement Analysis and Preparation
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