Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2020, for $846,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $1.90 million. Any excess of cost over book value is attributable to a trade name with a 20-year remaining life. Stelnbart immediately begins supplying inventory to Alex as follows: Amount Held by Alex at Year-End Cost to Steinbart Transfer Price (at transfer price) 2020 $121,600 $152,000 $38,000 2021 154,425 217,500 67,500 Year Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $85,750 in 2020 and $121,350 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 $39.450 $54,150 $35.290 $48.150