At December 31, 2020, Silicon 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 $ 318,600. It is determined that the fair value of the securities is actually $ 326,200. The entry to adjust the portfolio to fair value will include a

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According to the question, Silicon Corp.'s stock investment portfolio is being accounted for using the fair value through net income (FV-NI) model. Therefore, any fluctuations in fair value will be recorded in the FV-NI Investments account. Since the fair value of the securities is $326,200, and the general ledger balance is only $318,600, there is a difference of $7,600 that needs to be adjusted. To adjust the portfolio to fair value, we will debit FV-NI Investments for $7,600, as it represents an unrealized gain.