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3 10 The following information shows Carpark Company's individual investments in securities during its current year along with the December 31 fair values. a. Investment in Brava Company bonds: $446,050 cost: $484,856 fair value. Carperk Intends to hold these bonds until they mature in b. Investment in Baybridge common stock 29.500 shares; $384.610 cast: $385.461 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge. c. Investment in Duffa bonds: $182,881 cost: $197546 fair value. This investment is not readily marketable and is not classified as held to maturity or trading d. Investment in Newton notes: $101699 cost $99.970 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: $111.513 cost $118.427 fair value. This stock is marketable, and Carperk intends to sell it within the year. This stock investment results in Carper 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 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 er 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 d. e. Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 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 debe securities prior to this year. View transaction fint Journal entry worksheet Record the fair value adjustment for the portfolio of available for sale det securities. Carperk had no available-for-sale debt securities prior to this year. Note: Enter debits before credits General Journal Deba Credit Date Dec 31 Record entry Clear entry View general journal

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