Write . The two off-diagonal entries of give
or . If both vanish, is diagonal; if either is nonzero, the trace must be one. Thus the trace criterion for a two-by-two idempotent is
For the diagonal case, idempotence further forces . The stated alternative is only necessary: has trace one but its square is , so it is not idempotent. Among two-by-two matrices of trace one, the additional condition is sufficient by the Cayley-Hamilton theorem, which gives .

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