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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

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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: $467,700 cost; $508,390 fair value. Carperk intends to hold these bonds until they mature in 5 years. b. Investment in Baybridge common stock: 29,500 shares; $371,822 cost; $404,171 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge. c. Investment in Duffa bonds: $191,757 cost; $206,714 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading. d. Investment in Newton notes: $106,636 cost; $104,823 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; $116,925 cost; $124,174 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. Complete this question by entering your answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify whether each investment should be classified as a short-term or long-term in which of the six investment classifications it should be placed. Type of Investment Classification of Long-term Investment a. b. c. d. e. Required Required 2 > ournal entry worksheet 1 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. ote: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general jour

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