Jordan Jones recently received a 10 percent capital and profits interest in JJ Capital in exchange for consulting services she provided. If JJ Capital had paid an outsider to provide the advice, it would have deducted the payment as compensation expense. JJ Capital's balance sheet on the day Jordan received her capital interest appears below (2 pts each):

BasisFair Market ValueAssets:Cash$150,000$150,000Investments200,000700,000Land150,000250,000Totals$500,000$1,100,000Liabilities and capital:Nonrecourse debt$100,000$100,000Lance*200,000500,000Robert*200,000500,000Totals$500,000$1,100,000

1. Compute and characterize any gain or loss Jordan may have to recognize as a result of her admission to JJ Capital.
2. Compute each member's tax basis in his LLC interest immediately after JJ's receipt of her interest.
3. balance sheet for JJ Capital immediately after JJ's admission showing the members' tax capital accounts and their capital accounts stated at fair market value.
4. Compute and characterize any gain or loss Jordan may have to recognize as a result of her admission to Cirque Capital if she receives only a profits interest.
5. Compute each member's tax basis in the partnership interest immediately after Jordan's receipt of her interest if Jordan receives only a profits interest.