In 2017,Nigel Contributes Cash of $10,000 in Exchange for a 20

question 18

Essay

In 2017,Nigel contributes cash of $10,000 in exchange for a 20% interest in the NDP Partnership.The partnership is not a passive activity.For 2017,the partnership had an ordinary loss of $80,000,interest income of $2,000,dividends of $5,000,and capital gains of $4,000.How much of the current year loss is deductible by Nigel and what is Nigel's at-risk amount on December 31,2017?

Assess the role of workforce skills and core competencies in achieving competitive advantage.

Comprehend the financial and operational considerations in managing labor costs.

Acknowledge the significance of equitable labor practices on organizational reputation and employee satisfaction.

Understand how to calculate percentages and cumulative percentages in frequency distribution tables.

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Definitions:

Break-even Point

The point where total sales revenue is equal to total expenses, yielding neither profit nor loss.

Sales Mix

Sales mix is the proportion of different products or services that a business sells, impacting the overall profitability based on the differing margins of each item.

Operating Income

Profit realized from a business's core operations, calculated before taxes and interest.

Contribution Margin Ratio

A financial metric showing the percentage of sales revenue remaining after variable production costs have been deducted, indicating how much contributes towards covering fixed costs and generating profits.