Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2020, for $918,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $2.80 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 2020 2021 Cost to Steinbart Transfer Price $190,080 128,790 $216,000 159,000 (at transfer price) $54,000 48,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $84,250 in 2020 and $120,650 in 2021 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021? Multiple Choice $47,103. $26,703. $31,503. $39,603