What amount should payne report as goodwill

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Question - On January 2, Payne Co. acquired Shelf Co. in a business combination that resulted in recognition of goodwill of 4200,000 having an expected benefit period of 10 years. Shelf 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, Shelf spent an additional $80,000 on expenditures designed to maintain goodwill. Due to these expenditures, at December 31, Shelf estimated that the benefit period of goodwill was 40 years. In its consolidated December 31 balance sheet, what amount should Payne report as goodwill?

a. 200,000

b. 252,000

c. 180,000

d. 280,000

Reference no: EM132640266

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