Dave LaCroix recently received a 10 percent capital and profits interest in Cirque Capital LLC in exchange for consulting services he provided. If Cirque 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: Fair Market Value Basis Assets: Cash $ 120,000 $120,000 170,000 Investments 193,000 Land 260,000 430,000 Totals $550,000 24 743,000 Liabilities and capital: Nonrecourse Debt $140,000 $ 205,000 205,000 140,000 Lance* 301,500 Robert* 301,500 $550,000 $ 743,000 Totals *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 debt. (Leave no answer blank. Enter zero if applicable.) a. Compute and characterize any gain or loss Dave may have to recognize as a result of his admission to Cirque Capital. Gain or loss recognized of b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. Dave Lance Robert Tax basis c. Prepare a balance sheet for Cirque Capital immediately after Dave's admission showing the members' tax capital accounts and their capital accounts stated at fair market value. Cirque, LLC Balance Sheet Tax Basis 704(b)/FMV Assets: Cash Investments Land Totals Capital: Nonrecourse Debt Capital-Lance Capital-Robert Capital-Dave Totals 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. Gain or loss recognized e. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest if Dave receives only a profits interest. Dave Lance Robert Tax basis