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

Equity Investments.......................................$185,000
Fair Value Adjustment......................................34,000 Dr.

On January 1, 2021, Oliver purchased additional stock of Conrad Company for $475,000 and now has significant influence over Conrad. Prepare Oliver’s journal entries to record the purchase of the investment and the change to the equity method.