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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

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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, Amber's accountant indicated that the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory What is Amber's 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.) Costs Tax Inventory 0 0 Material: Mulch and packaging Administrative supplies Salaries: Factory labor Sales & advertising Administration Property taxes: Factory Offices Depreciation: Factory Offices Total Inventory Costs $ 5,000,000 $ 250,000 $ 12,000,000 3,500,000 5,200,000 $ 4,600,000 2,700,000 $ 8,000,000 1,500,000 $ 0 0 0 This year, Amber purchased a business that processes and packages landscape mulch. Approximately 30 percent of management time, space. and expenses are spent on this manufacturing process. At the end of the year, Amber's accountant indicated that the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory What is Amber's 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.) Costs Tax Inventory Material: $ Salaries: Mulch and packaging Administrative supplies Factory labor Sales & advertising Administration Factory Offices Factory Offices Total 530,000 27,000 1,810,000 625,000 550,000 740,000 280,000 1,180,000 180,000 Property taxes Depreciation

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