Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2020, for $544,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $1.50 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Steinbart immediately begins supplying inventory to Alex as follows: Amount Held by Alex at Year-End Year Cost to Steinbart 2020 Transfer Price (at transfer price) 2021 $123,000 145,530 $164,000 220,500 $41,000 68,500 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $104,000 in 2020 and $137,300 in 2021 and declares $40,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021? Multiple Choice $42,178. $27,768. $46,078. $32,578