The following information shows Carperk Company's individual investments in securities during its current year, along with the December 31 fair values.

1. Investment in Brava Company bonds: $318,500 cost; $346,210 fair value. Carperk intends to hold these bonds until they mature in 5 years.
2. Investment in Baybridge common stock: 29,500 shares; $253,208 cost; $275,237 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge.
3. Investment in Duffa bonds: $130,585 cost; $140,771 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading.
4. Investment in Newton notes: $72,618 cost; $71,383 fair value. Newton notes are not readily marketable and are not classified as held-to-maturity or trading.
5. Investment in Farmers common stock: 16,300 shares; $79,625 cost; $84,562 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.

Answer in this format please thank you!!

Required 1 Required 2 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. Type of Investment Classification of Long-term Investment 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. View transaction list Journal entry worksheet