Problem 1-12 (LO 1-3, 1-4, 1-6) Alex, Inc., buys 30 percent of Steinbart Company on January 1, 2017, for $918,000. The equity method of accounting is to be used. Steinbart's net assets on that date were $2.80 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: Amount Held by Alex at Year-End Year Cost to Steinbart Transfer Price (at Transfer Price) 2017 $190,080 $216,000 $54,000 2018 128,790 159,000 48,000 Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $84,250 in 2017 and $120,650 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 I! 3 of 17 Prey quizlet.com advanced accounting ch-1-flash-cards