Step 1:
\The mass of the block is
.
The mass of the bullet is
.
The initial speed of the bullet is
.
The acceleration of gravity is
. The combined mass of the block with bullet is:
.
,,, \ \

. By conservation of momentum, you can find the speed of the combined mass just after impact of the bullet.

.

.
The kinetic energy of the combined mass just after impact is:
.

. The maximum height the combined mass will rise into the air is:
.



.
The block rise into the air after the bullet becomes embedded is
.