(Answered) 1 oliver corporation has owned stock of conrad corporation

Accounting

1. Oliver Corporation has owned stock of Conrad Corporation since 2007. At December 31, 2010, its balances related to this investment were: Available-for-Sale Securities $185,000 Securities Fair Value Adj (AFS) 34,000 Dr. Unrealized Holding Gain or Loss-Equity 34,000 Cr. On January 1, 2011, Oliver purchased additional stock of Conrad Company for $475,000 and now has significant influence over Conrad. If the equity method had been used in 2007-2010, income would have been $33,000 greater than dividends received. Prepare Oliver's journal entries to record the purchase of the investment and the change to the equity method.

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