A pharmaceutical company acquires a company with patents on two prescription medicines. Drug A is a diabetes medicine and by itself, Drug A is moderately effective. Drug C is another moderately effective diabetes drug. When taken together, Drug A and Drug C are highly effective at lowering diabetes levels. On a standalone basis, Drug A has a fair value of $75 million and Drug C has a fair value of $125 million. When the drugs are valued together, Drug A and Drug C have a combined fair value of $230 million. Determine what is the Highest and Best Use for the patents? Summarize the highest and best use. What is the Fair Value for the Patents for Drug A & Drug C?

A pharmaceutical company acquires a company with patents on two prescription medicines. Drug A is a diabetes medicine and by itself, Drug A is moderately effective. Drug C is another moderately effective diabetes drug. When taken together, Drug A and Drug C are highly effective at lowering diabetes levels. On a standalone basis, Drug A has a fair value of $75 million and Drug C has a fair value of $125 million. When the drugs are valued together, Drug A and Drug C have a combined fair value of $230 million. Determine what is the Highest and Best Use for the patents? Summarize the highest and best use. What is the Fair Value for the Patents for Drug A & Drug C?

SWFT Comprehensive Vol 2020

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ISBN:9780357391723

Author:Maloney

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Chapter25: Taxation Of International Transact Ions

Section: Chapter Questions

Problem 21P

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Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. How should Aviation Systems account for this event?
Transaction BSurgimed Ghana Ltd. imports medical equipment which is manufactured under a patent. It subsequently adapts the equipment to fit the market in its jurisdiction and sells the equipment under its own brand name. Surgimed Ghana Ltd. originally spent GH¢8 million in developing the knowhow required to adapt the equipment and, in addition, it costs around GH¢80,000 to adapt each piece of equipment. Surgimed Ghana Ltd. has capitalised the cost of the know-how and also the cost of the adaptation of each piece of equipment sold, as patent rights. Surgimed Ghana Ltd. is being sued for patent infringement by Biotech Ltd., the owner of the original patent, on the grounds that Surgimed Ghana Ltd. has not materially changed the original product by its subsequent adaptation. If Biotech Ltd. is able to prove infringement, the court is likely to order Surgimed Ghana Ltd. to pay damages and to stop infringing its patent. Surgimed Ghana Ltd. lawyers feel that the court could conclude that…
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Determine what is the Highest and Best Use for the patents? Summarize the highest and best use.
What is the Fair Value for the Patents for Drug A & Drug C?