_____ Pumco Acquired Sumco at a Purchase Price That Resulted

Short Answer

_____ Pumco acquired Sumco at a purchase price that resulted in goodwill, which is estimated to have a 15-year life if no future expenditures are made to maintain the value of the goodwill. However, Sumco plans to make future expenditures to maintain the value of the goodwill indefinitely. Which costs are capitalizable, and over what maximum period should the capitalizable costs be amortized?