Amazon purchased MGM for $8.45 billion and capitalized the fair value of its movie catalog. In the same period, the company expensed $11 billion spent on producing movies, TV shows, and music for Prime. The difference in this accounting treatment is due to : a. the acquisition of the movie catalog is not an arm's length transaction so the fair value of the movie catalog is uncertain. b. the uncertainty about whether the $11 billion expenditure will produce positive future cash flows. c. the movie catalog has an indefinite life. d. all of these reasons are correct