Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2017, for $1,540,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $3.70 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: Amount Held by Alex at Year-End Year Cost to Steinbart Transfer Price (at Transfer Price) 2017 $132,600 $170,000 $42,500 2018 104,520 156,000 47,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $88,750 in 2017 and $119,850 in 2018 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018