b. Compute each members tax basis in his LLC interest immediately after Daves receipt of his interest.

c. Prepare a balance sheet for Cirque Capital immediately after Daves admission showing the members tax capital accounts and their capital accounts stated at fair market value.

d. Compute and characterize any gain or loss Dave may have to recognize as a result of his admission to Cirque Capital if he receives only a profits interest.

e. Compute each members tax basis in his LLC interest immediately after Daves receipt of his interest if Dave receives only a profits interest

Dave LaCroix recently received a 10 percnt capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Clrque Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest appears below: 'Assume that Lance's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. (Leave no answer blank. Enter zero if applicable.) Compute and characterize any gain or loss Dave may have to recognize as a result of his admission to Cirque Capital