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1 12 Saved Help Save & E Hope Company...

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Accounting

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1 12 Saved Help Save & E Hope Company b ight 30% of Faith Corporation in the beginning of 2018 Hope's purchase price equaled 30% of the book value of Faith's net identifiable assets, which also equaled 30% of the fair value of Faith. During 2018 Faith reported net income in the amount ol u o o and declared and paid dividends in the amount of $500,000 Hope mistakenly accounted for the investment using the fair value through net income method instead of using the equity method. What effect would this error have on the investment account and net income, respectively, for 2018

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