Alex, Inc., buys 30 percent of Steinbart Company on January 1,2020 , for $1 , 098 , 000 . The equity method of accounting is to be used. Steinbart's net assets on that date were $3.30 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: Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $100 , 000 in 2020 and $130 , 900 in 2021 and declares $40 , 000 in dividends each year. What is the equity income in Steinbart to be reported by Alex in 2021 ? Multiple Choice $27 , 870. $32 , 220. $47 , 220. $40 , 320