Pie, Inc. owns common stock in multiple companies. The original purchase price of all stock was $$2,300,000,$ the

fair value of the stock on $\frac{12}{31}\frac{?}{2020}$ was $$2,500,000$ when the appropriate year end adjusting journal entry was

made. The fair value on $\frac{12}{31}\frac{?}{2021}$ is $$2,875,000$ and the Fair Value adjustment account has a debit balance of

$$200,000.$ What is the adjusting journal entry needed on $\frac{12}{31}\frac{?}{2021}$ to adjust the investments to fair value?

DR Fair Value Adjustment $$375,000$; CR Unrealized Holding Gain$/$Loss$-$Income $$375,000$

DR Equity Investment $$375,000$; CR Unrealized Holding Gain$/$Loss$-$Income $$375,000$

DR Unrealized Holding Gain$/$Loss$-$Income $$375,000$; CR Fair Value Adjustment $$375,000$

DR Fair Value Adjustment $$575,000$; CR Unrealized Holding Gain$/$Loss$-$Income $$575,000$