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sadcoasta
sadcoasta
13.03.2020 • 
Business

On January 2, Paye Co. acquired Shef Co. in a business combination that resulted in recognition of goodwill of $200,000 having an expected benefit period of 10 years. Shef is treated as a reporting unit, and the entire amount of the recognized goodwill is assigned to it. During the first quarter of the year, Shef spent an additional $80,000 on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, Shef estimated that the benefit period of goodwill was 40 years. In its consolidated December 31 balance sheet, what amount should Paye report as goodwill?

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