If the equity method had been used in 2007-2010 income


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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Accounting Basics: If the equity method had been used in 2007-2010 income
Reference No:- TGS01496853

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