Alex, Inc., buys 40 percent of Steinbart Company on January 1, 2017, 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 2017 2018 Amount Held by Alex at Year-End Cost to Steinbart Transfer Price (at Transfer Price) $131,600 $188,000 $47,000 99,900 166,500 50,500 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 2017 and $136,650 in 2018 and declares $20,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018? Multiple Choice $47.320 0 $63,520 $56,920 $42.410