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Advanced Roofing, Inc. and Affiliates <br />Notes to Consolidated Financial Statements <br />Note 16. Business Combination and Goodwill (Continued) <br />The Company paid a premium over the fair value of the tangible assets acquired in the asset purchase, <br />which is recorded as goodwill in the aggregate amount of $500,000, because the acquisition provided a <br />strategic fit for the Company. The carrying amount of goodwill, and changes therein, during the year <br />ended December 31, 2015 is as follows: <br />Balance, December 31, 2014 <br />Acquired in conjunction with asset purchase <br />Amortization <br />Balance, December 31, 2015 <br />500,000 <br />(25,000) <br />475,000 <br />The Company elected to apply the accounting alternative provisions for goodwill which were retroactively <br />applied to these financial statements (see Note 1). Therefore, the Company is amortizing goodwill on a <br />straight-line basis not to exceed 10 years. The Company determined that a 10 -year life is appropriate for <br />the goodwill. The Company recorded $25,000 in goodwill amortization expense during the year ended <br />December 31, 2015. <br />As of December 31, 2015, the estimated future amortization of goodwill, in the aggregate, is as follows: <br />Years ending December 31: <br />2016 <br />2017 <br />2018 <br />2019 <br />2020 <br />Thereafter <br />20 <br />Amount <br />$ 50,000 <br />50,000 <br />50,000 <br />50,000 <br />50,000 <br />225,000 <br />$ 475,000 <br />