Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2020, for $622,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $1.80 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: Year Cost to Steinbart Transfer Price 2020 2021 $72,800 128,100 $104,000 210,000 Amount Held by Alex at Year-End (at transfer price) $26,000 65,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $96,250 in 2020 and $126,450 in 2021 and declares $30,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021? What is the equity income in Steinbart to be reported by Alex in 2021? Multiple Choice $28,570. $24,220. $42,670. $38,470