Exercise 1515 (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. $302,950 cost; $329,307 fair value. Carperk intends to hoid these bonds until they mature in 5 years. b. Investment in Baybridge common stock: 29,500 shares, $240,845 cost: $261,799 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge c. Investment in Duffa bonds: $124,209 cost, $133,897 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading. d. Investment in Newton notes: $69,073 cost, $67,899 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, $75,738 cost, $80,434 fair value. This stock is marketable, and Carperk intends to sell it within the year. This stock investment resuits 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 clossificotions it should be placed 2. Prepare a journal entry dated December 31 to record the fair value adjustment for the portfolio of available-for-sole debt. securties. Carperk had no avallable-for-sale debt securities prior to this year Complete this question by entering your answers in the tabs below. Idensity whether each investment should be classified as a short-term of fong-term investment. For each investinent, indicate in which of the six investment ctassifications it should be alaced