Note 4: Value of Business Acquired

12 Months Ended

Dec. 31, 2015

Notes

Note 4: Value of Business Acquired

4)    Value of Business Acquired and Goodwill

Information with regard to value of business acquired is as follows:

	December 31
	2015	2014
Balance at beginning of year	$      8,547,627	$      8,680,845
Value of  business acquired	1,473,272	1,169,428
Imputed interest at 7%	590,108	591,412
Amortization	(1,867,234)	(1,894,058)
Net amortization charged to income	(1,277,126)	(1,302,646)
Balance at end of year	$      8,743,773	$      8,547,627

Presuming no additional acquisitions, net amortization charged to income is expected to approximate $1,199,000, $1,115,000, $1,037,000, $947,000, and $873,000 for the years 2016 through 2020. Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2015, value of business acquired is being amortized over a weighted average life of 6.0 years.

Information with regard to goodwill acquired is as follows:

	December 31
	2015	2014
Balance at beginning of year	$      2,765,570	$         677,039
Goodwill acquired	-	2,373,722	(1)
Other	-	(285,191)	(2)
Balance at end of year	$      2,765,570	$      2,765,570

(1)   Goodwill acquired due to the acquisition of American Funeral Financial in 2014.

(2)   Goodwill eliminated due to the sale of Paradise Chapel Funeral Home assets in 2014.

Goodwill is not amortized but tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill.