5) Value of Business Acquired, Instangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Notes

5) Value of Business Acquired, Instangible Assets and Goodwill

5) Value of Business Acquired, Intangible Assets and Goodwill 

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

	December 31
	2019		2018
Balance at beginning of year	$      5,765,190		$      6,588,759
Value of  business acquired	4,962,831	(1)	-
Imputed interest at 7% included in earnings	472,916		421,122
Amortization included in earnings	(1,320,456)		(1,244,691)
Shadow amortization included in other   comprehensive income	(3,834)		-
Net amortization	(851,374)		(823,569)
Balance at end of year	$      9,876,647		$      5,765,190
(1) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

Presuming no additional acquisitions, net amortization charged to income is expected to approximate $1,194,000, $1,065,000, $985,000, $916,000, and $845,000 for the years 2020 through 2025 . Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2019, value of business acquired is being amortized over a weighted average life of 6.8 years.

The carrying value of the Company’s intangible assets were as follows:

		December 31
	Useful Life	2019		2018
Intangible asset - customer lists	15 years	$         890,000	(1)	$      890,000	(1)
Intangible asset - trade name	15 years	$         610,000	(2)	$                -
Less accumulated amortization		(98,222)		(34,611)
Balance at end of year		$      1,401,778		$      855,389
(1) See Note 20 regarding the acquisition of Beta Capital Corp.
(2) See Note 20 regarding the acquisition of Kilpatrick Life Insurance Company

Information regarding goodwill by segment was as follows:

	Life Insurance	Cemetery/Mortuary		Total
Balance at January 1, 2018:
Goodwill	$ 2,765,570	$           -		$ 2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570
Balance at December 31, 2018:
Goodwill	2,765,570	-		2,765,570
Accumulated impairment	-	-		-
Total goodwill, net	2,765,570	-		2,765,570
Acquisition	-	754,018	(1)	754,018
Balance at December 31, 2019:
Goodwill	2,765,570	754,018		3,519,588
Accumulated impairment	-	-		-
Total goodwill, net	$ 2,765,570	$ 754,018		$ 3,519,588
(1) See Note 20 regarding the acquisition of Probst Family Funerals and Cremations and Heber Valley Funeral Home

Goodwill of $3,519,588 is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for the years ended December 31, 2019 and 2018.