Space Research Company paid $500,000 cash to acquire the entire business of Saturn Company, a strong competitor. In negotiating this lump-sum price for the business, a valuation of $60,000 was assigned to goodwill, representing four times the amount by which Saturn Company’s annual earnings had exceeded normal earnings in the industry. Assuming that the goodwill is recorded in the accounts of Space Research Company, should it remain there permanently or be amor¬

tized? What basis of amortization might be used? LO2