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5) Value of Business Acquired, Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
5) Value of Business Acquired, Intangible 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  
    2020   2019  
Balance at beginning of year    $      9,876,647    $      5,765,190  
Value of  business acquired                        -            4,962,831 (1)
Imputed interest at 7% included in earnings              670,565              472,916  
Amortization included in earnings          (1,457,390)          (1,320,456)  
Shadow amortization included in other
   comprehensive income		             (134,573)                (3,834)  
Net amortization             (921,398)             (851,374)  
Balance at end of year    $      8,955,249    $      9,876,647  
                                
(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 $1,019,000, $918,000, $854,000, $784,000, and $707,000 for the years 2021 through 2026 . Actual amortization may vary based on changes in assumptions or experience. As of December 31, 2020, value of business acquired is being amortized over a weighted average life of 6.9 years.

 

The carrying value of the Company’s intangible assets were as follows which is included in other assets:

 

      December 31
  Useful Life   2020   2019
Intangible asset - customer lists 15 years    $         890,000    $      890,000
Intangible asset - trade name (1) 15 years    $         610,000    $      610,000
Less accumulated amortization               (197,334)            (98,222)
Balance at end of year      $      1,302,666    $    1,401,778
                                
(1) 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, 2019:          
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
           
Acquisition                 -                -                   -
           
Balance at December 31, 2020:          
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, 2020 and 2019.