DreamWorks Animation SKG Inc. shows film costs as an asset on its balance sheet. In the notes

DreamWorks Animation SKG Inc. shows €œfilm costs€ as an asset on its balance sheet. In the notes to its financial statements, the following disclosure was made:

a. Interpret the film cost asset categories.
b. How are these classifications similar or dissimilar to the inventory classifications used in a manufacturingfirm?

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December 31, Film Costs (in thousands) Year 2 Year 1 n release: Animated feature films Television specials $356,715 $328,174 56,689 41,955 In production: 341,319 14,359 32,127 882646 $772668 Animated feature films Television specials 435,985 22,034 25,957 In development Total film costs