Taxation business thru entities

please help with this tax question

Required information 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 Investments Land Totals $270,000 270,000 164,000 140,000 150,000320,000 $560,000 754,000 Liabilities and capital: Nonrecourse Debt Lance* Robert* Totals $240,000 240, 000 160,000 160,000 257,000 $560,000 754,000 257,000 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 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. or loss reco 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 Investments Land Totals $270,000 270,000 164,000 150,000 320,000 $560,000 754,000 140,000 Liabilities and capital: Nonrecourse Debt Lance* Robert Totals 240,000 240,000 257,000 160,000257,000 $560,000 754,000 160,000 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 debt. (Leave no answer blank. Enter zero if applicable.) b. Compute each member's tax basis in his LLC interest immediately after Dave's receipt of his interest. Dave Robert Tax basis 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 Cash Investsents Land Totals $270,000 270,000 164,000 1320.000 $560,000 754,000 140,000 150,000 Liabilities and capital Nonrecourse Debt Lance* Robert Totals $240,000 240,000 160,000 257,000 160,000257,000 $560,000 754,000 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 debt. (Leave no answer blank. Enter zero if applicable.) 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(byFMv Assets: Cash 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 Required information 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 Investments Land $270,000 270,000 140,000 164,000 150,000320,000 $560,000 754,000 Totals Liabilities and capital: Nonrecourse Debt Lance* Robert Totals 240,000 240,000 160, 000 257,000 257,000 $560,000754,000 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 debt. (Leave no answer blank. Enter zero if applicable.) 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 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 Investments Land Totals $270,000 270,000 164,000 150,000320,000 $560,000 754,000 140,000 Liabilities and capital: Nonrecourse Debt Lance* Robert* Totals $240,000 240,000 257,000 160,000 257,000 160,000 $560,000 754,000 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 debt. (Leave no answer blank. Enter zero if applicable.) 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 Robert Tax basis