Prairie Partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of
January 1, 20X5. Prairie’s 20X5 ordinary business income was $152,000 before deducting any guaranteed payments to the partners. During 20X5, Prairie paid Mack guaranteed payments of $4,000 for deductible services rendered. During 20X5, each of the four partners took a distribution of $50,000. What is Mack’s tax basis in Prairie on December 31, 20X5?
1 answer:
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Answer:
Inventory cost will be $3
So option (b) is correct option
Explanation:
We have given that carrying and setup cost is $600
So carrying and setup cost = $600
And EOQ = 200 units
We have to find the inventory carrying cost per year
We know that inventory carrying cost is given by
inventory carrying cost
So option (b) will be correct option