Exercise 15-15 (Algo) Classifying investments in securities; recording fair values LO C1, P2, P3, P4, P5 The following information shows Carperk Company's individual investments in securites during its current yeat, along with the December 31 fair values. a. Investment in Brava Company bonds: $461,650 cost, $501,814 fair value. Carperk intends to hold these bonds untu they mature in 5 years. b. Investment in Baybridge common stock: 29,500 shares; $367,012 cost, $398,942 falr value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge. c. Investment in Duffa bonds: $189,277 cost, $204,041 far value. This investment is not readily marketabie and is not classified as held-to-maturity or trading. d. Investment in Newton notes: \$105,256 cost; \$103,467 fair value. Newton notes are not readily marketable and are not classified os held to maturity or trading e. Investment in Farmers common stock: 16,300 shares, $115,413 cost: $122,569 fair value, This stock is maketable, and Carperk intends to sell it within the year, This stock investment results in Carperk having an insignificant intluence over Farmers. Required: 1. Identify whether each investment-should be classified as a short-ferm 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 securittes. Carperk tad no avallable-for sale debt securities pritor to this year