Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:

YEAR/ COST TO ACKER/ TRANSFER PRICE/ AMOUNT HELD BY HOWELL AT YEAR-END:

2020/ $55,000/ $75,000/ $15,000

2021/ $70,000/ $110,000/ $55,000

Howell reported net income of $100,000 in 2020 and $120,000 in 2021 while paying $40,000 in dividends each year.

what is the equity in Howell income that should be reported by Acker in 2021?

options are

$32,000 - $41,600 - $48,000 - $49,600 - $50,600