Borgin Inc. owns $30\%$ of the outstanding voting common stock of Burkes Co$.$ and has the ability to significantly influence the investee$$s operations and decision$-$making. On January $1,2021,$ the balance in the Investment in Burkes Co$.$ account was $$402,000.$ Amortization associated with the purchase of this investment is $$8,000$ per year. During $2021,$ Burkes earned income of $$108,000$ and paid cash dividends of $$36,000.$ Previously in $2020,$ Burkes had sold inventory costing $$28,800$ to Borgin for $$48,000.$ All but $25\%$ of this merchandise was consumed by Borgin during $2020.$ The remainder was used during the first few weeks of $2021.$ Additional sales were made to Borgin in $2021$; inventory costing $$33,600$ was transferred at a price of $$60,000.$ Of this total, $40\%$ was not consumed until $2022.$

What amount of equity income would Borgin have recognized in $2021$ from its ownership interest in Burkes?

Multiple Choice

$$19,792.$

$$27,640.$

$$22,672.$

$$24,400.$

$$21,748.$