Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2020, for $1,458,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $3.40 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 2020 2021 Cost to Steinbart $131,600 99,900 Multiple Choice O Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $99,250 in 2020 and $136,650 in 2021 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021? $42,410 Transfer Price $188,000 166,500 $63,520. Amount Held by Alex at Year-End Search (at transfer price) $47,000 50, 500 11 8:52 9/27/20

Alex, inc, burs 40 percent of Steinbart Compony on Jaruary 1, 2020 for $1,458,000. The equity method of accounting is ta be used Steinbarts net assets on that date wore $3.40 million. Any excess of cost over book value is attributable to a trade name with a 20 -year remaining life. Stebibart inimediately begins sapplying inventory to Alex ins follows: Inventary beld at the end of one year by Alex is sold ot the beginning of the next Steinbart reports net income of $99250 in 2020 and $136.650 in 2024 and dechares $20,000 in dividends each year What is the equity incorrie in Stenbart to be reported by Alex in 2029 ? Mutwele choice $42,490 $63520