Exercise 15-13 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: $484,450 cost. $526,597 fair value Carperk intends to hold these bonds until they mature in 5 years b. Investment in Baybridge common stock 29,500 shares $385,138 cost, $418,645 fair value Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge c. Investment in Duffa bonds: $198,625 cost $214,118 fair value. This investment is not readily marketable and is not classified as held- to-maturity or trading d. Investment in Newton notes $110,455 cost, $108,577 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, $121,113 cost $128.622 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-term 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 available for sale debt securities prior to this year