Why do we recognize a discount on bond investment and a gain on the investment at the same time? the fair value is 714,943 and amortized cost is 671,297.

Sale of HTM Investments Typically, held-to-maturity investments are-you guessed it-held to maturity. However, suppose that due to unforeseen circumstances the company decided to sell its debt investment for $725,000 on January 5, 2022.4 United would record the sale as follows (for simplicity we ignore interest earned during the first five days of 2022):5 Page 651 January 5, 2022 Cash 725,000 Discount on bond investment (account balance) 28,703 Investment in bonds (account balance) 700,000 Gain on investments (NI) (to balance) 53,703 In other words, United would record this sale just like any other asset sale, with a realized gain or loss determined by comparing the cash received with the carrying value (in this case, the amortized cost) of the asset sold