If a short-term debt investment is sold, the Investment account is

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When a short-term debt investment is sold, the Investment account is credited for the cost of the bonds at the sale date. This is because the cost represents the amount originally paid for the investment, and is used to determine the gain or loss on the investment when it is sold. The market value and fair value may be different from the cost, but they are not relevant for determining the gain or loss on the sale. The cost is also used to determine the taxable gain or loss for tax purposes.

If a Short-Term Debt Investment Is Sold, the Investment Account