Information regarding Carperk Company's individual investments in securities during its calendar-year 2015, along with the December 31, 2015, fair values, follows.

a.

Investment in Brava Company bonds: $317,550 cost, $345,177 fair value. Carperk intends to hold these bonds until they mature in 2020.

b.

Investment in Baybridge common stock: 29,500 shares; $252,452 cost; $274,415 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge.

c.

Investment in Buffa common stock: 12,000 shares; $130,195 cost; $140,350 fair value. This investment amounts to 3% of Buffas outstanding shares, and Carperks goal with this investment is to earn dividends over the next few years.

d.

Investment in Newton common stock: 3,500 shares; $72,401 cost; $71,170 fair value. Carperks goal with this investment is to reap an increase in fair value of the stock over the next three to five years. Newton has 30,000 common shares outstanding.

e.

Investment in Farmers common stock: 16,300 shares; $79,388 cost; $84,310 fair value. This stock is marketable and is held as an investment of cash available for operations.

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. (Select "NA" in classification of long-term investment, if the type of investment is short term.)

Type of Investment

	Classification of Long-term Investment
a.
b.
c.
d.
e.

Prepare a journal entry dated December 31, 2015, 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 2015. (If no entry is required select No journal entry required in the first entry field.)

1.

Record the fair value adjustment of the long-term investments in available-for-sale securities for Dec 31,2015. Carperk had no long-term investments prior to year 2015.