Prior to 2001, companies amortized the goodwill intangible asset by recording an expense on the income statement each year. Goodwill was taken at straight-line amortization over a period of up to 40 years.For example, if Company A purchased Company B for $450,000 (i.e., purchase price) and the book value of Company B was only $400,000, the goodwill intangible asset would be $50,000.The $50,000 asset would be amortized for the same amount each year for up to 40 years.If you assume that Company A decided to amortize the goodwill amount over 40 years, then the amortization expense listed on the income statement is $1,250 annually (i.e., $50,000 divided by 40 years).or example, if Company A purchased Company B for $450,000 (i.e., purchase price) and the book value of Company B was only $400,000, the goodwill intangible asset would be $50,000. The $50,000 asset would be amortized for the same amount each year for up to 40 years.