Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2017, for $762,000. The equity method of accounting is to be used. Steinbarts net assets on that date were $2.30 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	Amount Held by Alex at Year-End (at Transfer Price)
2017	$202,160	$266,000	$66,500
2018	117,990	171,000	52,000

Inventory held at the end of one year by Alex is sold at the beginning of the next.

Steinbart reports net income of $95,500 in 2017 and $130,300 in 2018 and declares $30,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018?