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

$$Investment in Brava Company bonds: $$420,500$ cost; $$457,000$ fair value. Carperk intends to hold these bonds until they mature in $5$ years.

$$Investment in Baybridge common stock: $29,500$ shares; $$362,450$ cost; $$391,375$ fair value. Carperk owns $32\%$ of Baybridge's voting stock and has a significant influence over Baybridge.

$$Investment in Duffa bonds: $$165,500$ cost; $$178,000$ fair value. This investment is not readily marketable and is not classified as held$-$to$-$maturity or trading.

$$Investment in Newton notes: $$90,300$ cost; $$88,625$ fair value. Newton notes are not readily marketable and are not classified as held$-$to$-$maturity or trading.

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 a through e should be classified as a short$-$term or long$-$term invest$-$ment. For each investment, indicate in which of the six investment classifications listed in Exhibit $15\mathrm{.}2$ 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.