Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2017, for $956,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $2.20 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 Amount Held by Alex at Year-End Transfer Price (at Transfer Price) $290,000 $72,500 172,000 54,000 Cost to Steinbart $220,400 113,520 2017 2018 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $98,750 in 2017 and $134,750 in 2018 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018