Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2020, for $1.212,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $2.90 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) 2020 $215,760 $248,000 $62,000 2021 137,280 171,600 52,200 Inventory held at the end of one year by Alex is sold at the beginning of the next Steinbart reports net income of $101.500 in 2020 and $135,000 in 2021 and declares $30,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021? Multiple Choice 560.648 $65,548 Prey 1 of 4 ! Next >