! Required Information [The following information applies to the questions displayed below] Dave LaCrolx recently received a 10 percent capital and profits Interest In Cirque Capital LLC In exchange for consulting services he provided. If Cinque 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 Basis ABBeta Cash $210,000 $ 210,090 Investments 100, 000 126,000 Land 290,000 120, 000 Totals $600, 000 $ 756,000 Liabilities and capital: Nonrecourse Debt $230, 000 230, 000 Lancet 185, 000 263, 000 Roberts 185, 000 263, 000 Totals $600, 000 756, 000 ices 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 as Ordinary income