At December 31, 2017, Morgan Corp.'s stock investment portfolio, which is being accounted for by the fair value through net income (FV-NI)model, shows a general ledger balance of $214,500.It is determined that the fair value of the securities is actually $225,400.The entry to adjust the portfolio to fair value will include a

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According to the FV-NI model, any changes in the fair value of the investment portfolio are recorded through the income statement. Therefore, to adjust the portfolio to its fair value of $225,400, a debit of $10,900 needs to be made to FV-NI Investments account. This will recognize the unrealized gain of $10,900 in the income statement. There is no impact on cash, so options B and D can be eliminated. Investment Income or Loss account is not used in the FV-NI model.