Exercise $15-15($Algo$)$ Classifying investments in securities; recording fair values LO C$1,$ P$2,$ P$3,$ P$4,$ P$5$

The following information shows Carperk Company's individual investments in securities during its current year, along with the December $31$ fair values.

Investment in Brava Company bonds: $$303,350$ cost; $$329,741$ fair value. Carperk intends to hold these bonds until they mature in $5$ years.

Investment in Baybridge common stock: $29,500$ shares; $$241,163$ cost; $$262,144$ fair value. Carperk owns $32\%$ of Baybridge's voting stock and has a significant influence over Baybridge.

Investment in Duffa bonds: $$124,373$ cost; $$134,074$ fair value. This investment is not readily marketable and is not classified as held$-$to$-$maturity or trading.

Investment in Newton notes: $$69,164$ cost; $$67,988$ fair value. Newton notes are not readily marketable and are not classified as held$-$to$-$maturity or trading.

Investment in Farmers common stock: $16,300$ shares; $$75,838$ cost; $$80,540$ 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:

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.

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 available$-$for$-$sale debt securities prior to this year.