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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: $349,000 cost $379,363 fair value Carperk intends to hold these bonds until they mature in 5 years b. Investment in Baybridge common stock: 29,500 shares: $277.455 cost: $301,594 fair value Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge c. Investment in Duffa bonds. $143,090 cost $154,251 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading. d. Investment in Newton notes: $79,572 cost: $78,219 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; $87,250 cost, $92,660 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 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 investment. For each investihent, indicate 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 2 > Vroom Journal entry worksheet 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, Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general Journal

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