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Cryptocurrency Project (Part One) ACCT 4300 Fall 2021 Due via Electronic Submission 9/21/21 Zenith Corporation is considering engaging in transactions with digital assets (cryptocurrencies) to

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Cryptocurrency Project (Part One) ACCT 4300 Fall 2021 Due via Electronic Submission 9/21/21 Zenith Corporation is considering engaging in transactions with digital assets (cryptocurrencies) to facilitate various transactions with customers and vendors in a developing country whose political climate has greatly affected the stability and credibility of the country's banking system and currency valuation Zenith has no experience with digital assets. Assume you are the CFO for Zenith, and the Board of Director's has asked you give a presentation on the suitability of engaging in digital asset transactions for commercial activities and for diversification of the company's asset base. Prepare a Power Point presentation that you would have accompany an oral presentation that includes but is not limited to the following: Business rationalization for engaging in cryptocurrency transactions Risks and rewards Accounting treatment and potential impact on the financial statements (reference authoritative guidance) with illustrative examples for each of the following scenarios: 1. A sales contract is negotiated with the selling price being 10 Bitcoin (which will be received at the time of the sale when the market price per Bitcoin is $50,000) 2. Same terms as above except the payment of Bitcoin is due 2 months after the sales date. Assume two scenarios a) the price per bitcoin is $40,000 two months after the sale and b) the price of bitcoin is $60,000 two months after the sale. 3. The company purchases 10 Bitcoin to hold indefinitely to diversify the balance sheet or for an unspecified future use. Assume the purchase price is $50,000 per bitcoin and at the financial reporting date the value of Bitcoin has hypothetically changed to either $40,000 or $60,000 You may work on this project individually or with another peer. The project will be graded both on the quality of the content (50%) and the presentation quality (50%)

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