Refer to the excerpts below from MBI's 2019 10-K (Note N on In NOTE N. INTANGIBLE ASSETS INCLUDING GOODWILL Intangible Assets The following table presents the company's intangible asset balances by major asset class. ($ in millions) Gross Carrying Accumulated Amount Amortization Net Carrying Amount At December 31, 2019:* Intangible asset class Capitalized software Client relationships Completed technology Patents/trademarks Other** Total $ 1,749 8,921 6,261 2,301 56 $19,287 $ (743) $ 1,006 (1,433) 7,488 (1,400) 4,861 (445) 1,856 (31) 24 $(4,052) $15,235 NOTE E. ACQUISITIONS & DIVESTITURES Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, except otherwise stated were for 100 percent of the acquired business and are reported in the Consolidated Statement of Cash Flows, net of acquired cash and cash equivalents. ($ in millions) Amortization Life (in Years) Allocated Amount $ 3,186 939 Current assets* Property, plant and equipment/ noncurrent assets Intangible assets Goodwill Client relationships Completed technology Trademarks Total assets acquired Current liabilities** Noncurrent liabilities Total liabilities assumed Total purchase price N/A 10 9 20 23,125 7,215 4,571 1,686 $40,722 1,378 4,265 $ 5,642 $35,080 Notes 2019 2018 $ 8,172 141 $ 11,379 225 I 696 618 K Consolidated Balance Sheet ($ in millions except per share amounts) At December 31: Assets Current assets Cash and cash equivalents Restricted cash Marketable securities Notes and accounts receivable-trade (net of allowances of $299 in 2019 and $309 in 2018) Short-term financing receivables (net of allowances of $188 in 2019 and $244 in 2018) Other accounts receivable (net of allowances of $33 in 2019 and $38 in 2018) Inventory Deferred costs Prepaid expenses and other current assets Total current assets Property, plant and equipment Less: Accumulated depreciation Property, plant and equipment-net Operating right-of-use assets-net* Long-term financing receivables (net of allowances of $33 in 2019 and $48 in 2018) Prepaid pension assets Deferred costs Deferred taxes Goodwill Intangible assets-net Investments and sundry assets Total assets J 7,432 22,388 743 1,682 2,300 2,378 49,146 32,460 21,668 10,792 L L 7,870 14,192 1,733 1,619 1,896 2,101 38,420 32,028 22,018 10,010 4,996 8,712 6,865 2,472 5,182 58,222 15,235 2,074 $ 152,186 L M V G ZZO 9,148 4,666 2,676 5,216 36,265 3,087 2,386 $ 123,382 o 2019 2018 2017 $ 9,431 $ 8,728 $ 5,753 4,209 1,850 679 (1,527) (1,096) 3,127 1,353 510 853 3,021 1,520 534 (931) 123 14 For the year ended December 31: Cash flows from operating activities Net income Adjustments to reconcile net income to cash provided by operating activities Depreciation and amortization Goodwill impairment Stock-based compensation Deferred taxes Net (gain)/loss on asset sales and other Change in operating assets and liabilities, net of acquisitions/divestitures Receivables (including financing receivables) Retirement related Inventory Other assets/other liabilities Accounts payable Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from disposition of property, plant and equipment Investment in software Purchases of marketable securities and other investments Proceeds from disposition of marketable securities and other investments Non-operating finance receivables-net Acquisition of businesses, net of cash acquired Divestiture of businesses, net of cash transferred Net cash provided by/(used in) investing activities 1,297 1,014 18 502 301 67 858 (503) 14,770 1,006 1,368 (127) (1,819) 126 4,437 47 15,247 16,724 (2,286) 537 (621) (3,693) 3,961 6,720 (32,630) 1,076 (26,936) (3,395) 248 (569) (7,041) 6,487 (503) (139) (3,229) 460 (544) (4,949) 3,910 (2,028) (496) (205) (7,081) (4,913) Refer to the excerpts from MBI's 2019 10-K. 1. What is the fair value of Red Hat's net identifiable assets in the acquisition transaction? (2 points) $ 0 million 2. What percentage of the acquisition price is allocated to goodwill? Round your answer to the nearest digit. (2 points) 0 % 3. Which number reported on the statement of cash flow for 2019 incorporates part of the purchase price from the acquisition transaction? Use a positive number to indicate a cash inflow and a negative number to indicate a cash outflow. (2 points) $ 0 million 4. On the 2019 balance sheet, how much of the change in the line item "Intangible assets - net" from 2018 to 2019 is from the acquisition of Red Hat? (2 points) $ 0 million 5. Refer to Note N. For MBI's "completed technology" intangible assets, do they have finite or indefinite lives? (2 points) lives because 6. How much goodwill impairment loss was taken for fiscal 2019? (2 points) $ 0 million Refer to the excerpts below from MBI's 2019 10-K (Note N on In NOTE N. INTANGIBLE ASSETS INCLUDING GOODWILL Intangible Assets The following table presents the company's intangible asset balances by major asset class. ($ in millions) Gross Carrying Accumulated Amount Amortization Net Carrying Amount At December 31, 2019:* Intangible asset class Capitalized software Client relationships Completed technology Patents/trademarks Other** Total $ 1,749 8,921 6,261 2,301 56 $19,287 $ (743) $ 1,006 (1,433) 7,488 (1,400) 4,861 (445) 1,856 (31) 24 $(4,052) $15,235 NOTE E. ACQUISITIONS & DIVESTITURES Purchase price consideration for all acquisitions was paid primarily in cash. All acquisitions, except otherwise stated were for 100 percent of the acquired business and are reported in the Consolidated Statement of Cash Flows, net of acquired cash and cash equivalents. ($ in millions) Amortization Life (in Years) Allocated Amount $ 3,186 939 Current assets* Property, plant and equipment/ noncurrent assets Intangible assets Goodwill Client relationships Completed technology Trademarks Total assets acquired Current liabilities** Noncurrent liabilities Total liabilities assumed Total purchase price N/A 10 9 20 23,125 7,215 4,571 1,686 $40,722 1,378 4,265 $ 5,642 $35,080 Notes 2019 2018 $ 8,172 141 $ 11,379 225 I 696 618 K Consolidated Balance Sheet ($ in millions except per share amounts) At December 31: Assets Current assets Cash and cash equivalents Restricted cash Marketable securities Notes and accounts receivable-trade (net of allowances of $299 in 2019 and $309 in 2018) Short-term financing receivables (net of allowances of $188 in 2019 and $244 in 2018) Other accounts receivable (net of allowances of $33 in 2019 and $38 in 2018) Inventory Deferred costs Prepaid expenses and other current assets Total current assets Property, plant and equipment Less: Accumulated depreciation Property, plant and equipment-net Operating right-of-use assets-net* Long-term financing receivables (net of allowances of $33 in 2019 and $48 in 2018) Prepaid pension assets Deferred costs Deferred taxes Goodwill Intangible assets-net Investments and sundry assets Total assets J 7,432 22,388 743 1,682 2,300 2,378 49,146 32,460 21,668 10,792 L L 7,870 14,192 1,733 1,619 1,896 2,101 38,420 32,028 22,018 10,010 4,996 8,712 6,865 2,472 5,182 58,222 15,235 2,074 $ 152,186 L M V G ZZO 9,148 4,666 2,676 5,216 36,265 3,087 2,386 $ 123,382 o 2019 2018 2017 $ 9,431 $ 8,728 $ 5,753 4,209 1,850 679 (1,527) (1,096) 3,127 1,353 510 853 3,021 1,520 534 (931) 123 14 For the year ended December 31: Cash flows from operating activities Net income Adjustments to reconcile net income to cash provided by operating activities Depreciation and amortization Goodwill impairment Stock-based compensation Deferred taxes Net (gain)/loss on asset sales and other Change in operating assets and liabilities, net of acquisitions/divestitures Receivables (including financing receivables) Retirement related Inventory Other assets/other liabilities Accounts payable Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from disposition of property, plant and equipment Investment in software Purchases of marketable securities and other investments Proceeds from disposition of marketable securities and other investments Non-operating finance receivables-net Acquisition of businesses, net of cash acquired Divestiture of businesses, net of cash transferred Net cash provided by/(used in) investing activities 1,297 1,014 18 502 301 67 858 (503) 14,770 1,006 1,368 (127) (1,819) 126 4,437 47 15,247 16,724 (2,286) 537 (621) (3,693) 3,961 6,720 (32,630) 1,076 (26,936) (3,395) 248 (569) (7,041) 6,487 (503) (139) (3,229) 460 (544) (4,949) 3,910 (2,028) (496) (205) (7,081) (4,913) Refer to the excerpts from MBI's 2019 10-K. 1. What is the fair value of Red Hat's net identifiable assets in the acquisition transaction? (2 points) $ 0 million 2. What percentage of the acquisition price is allocated to goodwill? Round your answer to the nearest digit. (2 points) 0 % 3. Which number reported on the statement of cash flow for 2019 incorporates part of the purchase price from the acquisition transaction? Use a positive number to indicate a cash inflow and a negative number to indicate a cash outflow. (2 points) $ 0 million 4. On the 2019 balance sheet, how much of the change in the line item "Intangible assets - net" from 2018 to 2019 is from the acquisition of Red Hat? (2 points) $ 0 million 5. Refer to Note N. For MBI's "completed technology" intangible assets, do they have finite or indefinite lives? (2 points) lives because 6. How much goodwill impairment loss was taken for fiscal 2019? (2 points) $ 0 million