Sheridan Corporation has owned stock of Conrad Corporation since 2017. At December 31, 2020, its balances related to this investment were:

Equity Investments		$201,000
Fair Value Adjustment (AFS)		35,000	Dr.

On January 1, 2021, Sheridan purchased additional stock of Maria Company for $445,000 and now has significant influence over Conrad. Prepare Sheridans journal entries to record the purchase of the investment and the change to the equity method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record the purchase of additional stock.)
(To reclassify current investment.)
(To eliminate accounts for change to equity method.)