Anumber of years ago, lee acquired a 20% interest in the bluesky partnership for $60,000. the partnership was profitable through 2014, and lee's amount at risk in the partnership interest was $120,000 at the beginning of 2015. bluesky incurred a loss of $400,000 in 2015 and reported income of $200,000 in 2016. assuming that lee is not a material participant, how much of his loss from bluesky partnership is deductible in 2015 and 2016? consider the at-risk and passive loss rules, and assume lee owns no other passive investments.

if an amount is zero, enter "0".

lee's share of bluesky's loss in 2015 is $ . of this loss, $ can be deducted under the at-risk rules, and $ can be deducted under the passive loss rules. in 2016, he may deduct $ of his suspended loss against the passive income. this leaves a $ suspended loss at the end of 2016.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)