3. What would be the impact of Tesla's $1.5 billion Bitcoin purchase on the company's pretax earnings $400 million due to fluctuations in Bitcoin prices? Assume that Tesla generated $400 million in pretax earnings (earnings before taxes), through the first quarter of 2021 (2021Q1). For parts (A) and (B) below, provide the accounting entries (balance sheet accounts and debit/credit amounts), for the following: 1.Adjustments to the Bitcoin intangible asset value at the end of 2021Q1, and I 2. How Tesla's 2021Q1 pretax earnings would be affected if 10% of the Bitcoin holdings were sold A. What would be the accounting entries if the Bitcoin dollar value increased by $1.0 billion over 2021Q1? Please utilize the following asset and equity accounts for the accounting entries: Cash (asset); Intangible Assets (asset); Realized Gain/Loss (equity); Unrealized Gain/Loss (equity) 1. Adjustment to the Bitcoin intangible asset value No Journal entry 2. How Tesla's 2021Q1 pretax earnings would be affected if 10% of the Bitcoin holdings were sold B. What would be the accounting entries if the Bitcoin dollar value decreased by $1.0 billion over 2021Q1? Please utilize the following asset and equity accounts for the accounting entries: Cash (asset); Intangible Assets Cr.(asset); Realized Gain/Loss (equity); Unrealized Gain/Loss (equity) 1. Adjustment to the Bitcoin intangible asset value Unrealized loss (Dr) Cash (Cr) 2. How Tesla's 2021Q1 pretax earnings would be affected, if 10% of the Bitcoin holdings were sold I 4. Given Tesla's investment in Bitcoin, would you change how you would analyze the company's financial performance and which financial performance metrics would you focus on most? Would you also change the performance measures tied to compensation incentives for Elon Musk? 3. What would be the impact of Tesla's $1.5 billion Bitcoin purchase on the company's pretax earnings $400 million due to fluctuations in Bitcoin prices? Assume that Tesla generated $400 million in pretax earnings (earnings before taxes), through the first quarter of 2021 (2021Q1). For parts (A) and (B) below, provide the accounting entries (balance sheet accounts and debit/credit amounts), for the following: 1.Adjustments to the Bitcoin intangible asset value at the end of 2021Q1, and I 2. How Tesla's 2021Q1 pretax earnings would be affected if 10% of the Bitcoin holdings were sold A. What would be the accounting entries if the Bitcoin dollar value increased by $1.0 billion over 2021Q1? Please utilize the following asset and equity accounts for the accounting entries: Cash (asset); Intangible Assets (asset); Realized Gain/Loss (equity); Unrealized Gain/Loss (equity) 1. Adjustment to the Bitcoin intangible asset value No Journal entry 2. How Tesla's 2021Q1 pretax earnings would be affected if 10% of the Bitcoin holdings were sold B. What would be the accounting entries if the Bitcoin dollar value decreased by $1.0 billion over 2021Q1? Please utilize the following asset and equity accounts for the accounting entries: Cash (asset); Intangible Assets Cr.(asset); Realized Gain/Loss (equity); Unrealized Gain/Loss (equity) 1. Adjustment to the Bitcoin intangible asset value Unrealized loss (Dr) Cash (Cr) 2. How Tesla's 2021Q1 pretax earnings would be affected, if 10% of the Bitcoin holdings were sold I 4. Given Tesla's investment in Bitcoin, would you change how you would analyze the company's financial performance and which financial performance metrics would you focus on most? Would you also change the performance measures tied to compensation incentives for Elon Musk
