Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business.

Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. (Do not round intermediate calculation.)

a. $3,500 payment for next years property taxes on her place of business.

b. $3,800 to reimburse the cost of meals at restaurants incurred by employees while traveling for the business.

c. $4,200 for football tickets to entertain out-of-town clients during contract negotiations.

This year, Amber purchased a business that processes and packages landscape mulch. Approximately 20 percent of management time, space, and expenses are spent on this manufacturing process. At the end of the year, Ambers accountant indicated that the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory. What is Ambers tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.) (Leave no answers blank. Enter zero if applicable.)