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

1. Investment in Brava Company bonds: $420,500 cost; $457,000 fair value. Carperk intends to hold these bonds until they mature in 5 years.
2. Investment in Baybridge common stock: 29,500 shares; $362,450 cost; $391,375 fair value. Carperk owns 32% of Baybridges voting stock and has a significant influence over Baybridge.
3. Investment in Duffa bonds: $165,500 cost; $178,000 fair value. This investment is not readily marketable and is not classified as held-to-maturity or trading.
4. Investment in Newton notes: $90,300 cost; $88,625 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; $100,860 cost; $111,210 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.