Patold Corporation reports goodwill of $40 million on acquisition of Senholm Company. Subsequently, Patold learns that one of Senholms buildings has increased in value by $4 million. How is this reported, if the information is discovered (1) within the measurement period, and (2) after the measurement period is over?

(1) Within the measurement period (2) After the measurement period

1. Decrease in goodwill Gain on income statement
2. Increase in goodwill Not reported
3. Decrease in goodwill Not reported
4. Increase in goodwill Gain on income statement