Problem $1-12($Algo$)($LO $1-4,1-5,1-7)$

Alex, Incorporated, buys $40$ percent of Steinbart Company on January $1,2023,$ for $$772,000.$ The equity method of accounting is to be used. Steinbart's net assets on that date were $$1\mathrm{.}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:

$\backslash$table$[[,,,\backslash$table$[[$Amount Held by$],[$Alex at Year$-$End$],[($at transfer$]]],[$Year$,$Cost to Steinbart,Transfer Price,price$)],[2023,$$$204,480,$$$28,000,$$$71,000$