Check my Alex, Inc buys 30 percent of Steinbart Company on January 1. 2017, for S954,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $3.00 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 follow Amount Held by Alex at Year-End Year Cost to Steinbart Transfer Price (at Transfer Price) 2017 2018 $205, 00D 142,350 $250, 000 195,000 $62,500 60,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $103,500 in 2017 and $137,200 in 2018 and declares $30,000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2018? Multiple Choice $46,875 $32,595 $36,975 $52,275