Accounting for Digital Assets As of the end of its scal year, December 31, 2020, Square, Inc., reported an investment in bitcoin valued at $50 million. During the rst quarter of 2021, Square made a further investment of $170 million. During the rst quarter of 2021, the company recorded an impairment charge of $19.9 million in the three months ended March 31, 2021 due to the observed market price of bitcoin decreasing below the carrying value during the period. According to its statement of cash ows for the period, Square, Inc., did not sell o any of its investment in bitcoin during the rst quarter of 2021. REQUIRED a. What will be the balance of Square's bitcoin investment on March 31, 2021? $Answer million. b. Square reports that the impairment occurred during the period when the market price dropped below the carrying value. At the end of the quarter, the fair value of the bitcoin asset was $472.0 million. How would that aect your answer to part a? Why? The reported impairment would be AnswerHigherThe sameLower. The impairment must be recognized at the end of the period AnswerOr, Not whenever there is an indication that an impairment has occurred. In this case, a market price for bitcoin that is AnswerAboveEqual toBelow the carrying value would be considered such an indication. A subsequent recovery of the market price would AnswerAffectNot affect the impairment.