Exercise 15-11 Classifying investments in securities; recording fair values LO C1, P2, P3, P4 Information regarding Carperk Company's individual investments in securities during its calendar-year 2017, along with the follows. a. Investment in Brava Company bonds: $352,150 cost, $382,787 fair value. Carperk intends to hold these bonds until they b. Investment in Baybridge common stock: 29,500 shares; $279,959 cost $304,315 fair value. Carperk owns 32% of Baybridge's c. Investment in Buffa common stock: 12,000 shares; $144,382 cost: $155,644 fair value. This investment amounts to 3% of d. Investment in Newton common stock: 3,500 shares, $80,290 cost; $78,925 fair value. Carperk's goal with this investment is to e. Investment in Farmers common stock: 16,300 shares, $88,038 cost; $93,496 fair value. This stock is marketable and is held as mature in 2022 voting stock and has a significant influence over Baybridge Buffa's outstanding shares, and Carperk's goal with this investment is to earn dividends over the next few years. reap an increase in fair value of the stock over the next three to five years. Newton has 30,000 common shares outstanding an investment of cash available for operations. Required 1. Identify whether each investment should be classified as a short-term or long-term investment. For each long-term investment, indicate in which of the long-term investment classifications it should be placed 2. Prepare a journal entry dated December 31, 2017, to record the fair value adjustment of the long-term investments in available- for-sale securities. Carperk had no long-term investments prior to year 2017