Question: The question explores why Amazon accounted differently for its expenditures: capitalizing the fair value of MGM ' s movie catalog while expensing $ 1 1

The question explores why Amazon accounted differently for its expenditures: capitalizing the fair value of MGM

'

s movie catalog while expensing $

11

billion spent on creating movies, TV shows, and music for Prime. The multiple

-

choice answers attribute the differing treatments to uncertainty about the movie catalog's indefinite life and its fair value, as well as concerns about future cash flows from the $

11

billion expenditure.

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