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Complete this question by entering your answers in the tabs below. Identify whether each investment should be classified as a short-term or long-term investment. For

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Complete this question by entering your answers in the tabs below. Identify whether each investment should be classified as a short-term or long-term investment. For each investment, indicate in which of the six investment classifications it should be placed. Ex - ise C-15 (Algo) Classifying investments in securities; recording fair values LO C1, P2, P3, P4, P5 The following information shows Carperk Company's individual investments in securities during its current year, along with the December 31 fair values. a. Investment in Brava Company bonds: $344,800 cost; $374,798 fair value. Carperk intends to hold these bonds until they mature in 5 years. b. Investment in Baybridge common stock: 29,500 shares; $274,116 cost; $297,964 fair value. Carperk owns 32% of Baybridge's votin stock and has a significant influence over Baybridge. c. Investment in Duffa bonds: $141,368 cost; $152,395 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading. d. Investment in Newton notes: $78,614 cost; $77,278 fair value. Newton notes are not readily marketable and are not classified as held-to-maturity or trading. e. Investment in Farmers common stock: 16,300 shares; $86,200 cost; $91,544 fair value. This stock is marketable, and Carperk intends to sell it within the year. This stock investment results in Carperk having an insignificant influence over Farmers. Required: 1. Identify whether each investment should be classified as a short-torm or long-term investment. For each investment, indicate in which of the six investment classifications it should be placed. 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no avallable-for-sale debt securities prior to this year. Journal entry worksheet Record the fair value adjustment for the portfolio of available-for-sale debt securities. Carperk had no available-for-sale debt securities prior to this year. Note: Enter debits before credits

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