BlackBerry, who sells BlackBerry smartphones, recently reported in the statement of cash flows and notes to the financial statements in its annual report that it had made acquisitions of USD \(\$ 6.2\) million. Assume the balance sheet reported an increase in goodwill for the year in the amount of USD \(\$ 4.5\) million.

{Requirements}

1. What is the definition of goodwill?

2. Explain the meaning of

(a) the \(\$ 6.2\) million that BlackBerry reported on the statement of cash flows and

(b) the \(\$ 4.5\) million increase in goodwill on the balance sheet.

3. BlackBerry's income statement and statement of cash flows do not show any charges for amortization of goodwill during the year. Explain the reason for the lack of charges