nces Required information Problem 20-50 (LO 20-2) (Algo) [The following information applies to the questions displayed below.] 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. Assets: Cash Investments Land Totals Liabilities and capitals Nonrecourse liabilities Lance Robert Totals Basis $260,000 300,000 200,000 $760,000 $ 180,000 290,000 290,000 $760,000 Fair Market Value $260,000 322,000 390,000 $ 972,000 $ 180,000 396,000 396,000 $972,000 "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.) Problem 20-50 Part a (Algo) 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 9 < Prev 10 11 12 14 of 27 Next >