Oliver Corporation has owned stock of Conrad Corporation since 2009. At December 31, 2012, its balances related to this investment were:

Equity Investments                                         $185,000
Fair Value Adjustment (AFS)                            34,000 Dr.
Unrealized Holding Gain or Loss—Equity       34,000 Cr..

On January 1, 2013, 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 2009–2012, Oliver’s share of 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.