Required Information [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 capital: Nonrecourse liabilities Tatsuki Robert Totals Assets: Cash Investments Land Totals Capital: Nonrecourse Debt Capital-Tatsuki Capital-Robert Capital-Dave Totals Cirque, LLC Balance Sheet Tax Basis $ "Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: 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. 0 $ Basis $ 180,000 130,000 230,000 $ 540,000 0 $ $ 210,000 165,000 165,000 $540,000 704(b)/FMV Fair Market Value $ 180,000 157,000 420,000 $ 757,000 0 $ 210,000 273,500 273,500 $ 757,000
Required Information [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 capital: Nonrecourse liabilities Tatsuki Robert Totals Assets: Cash Investments Land Totals Capital: Nonrecourse Debt Capital-Tatsuki Capital-Robert Capital-Dave Totals Cirque, LLC Balance Sheet Tax Basis $ "Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their respective shares of nonrecourse liabilities. Note: 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. 0 $ Basis $ 180,000 130,000 230,000 $ 540,000 0 $ $ 210,000 165,000 165,000 $540,000 704(b)/FMV Fair Market Value $ 180,000 157,000 420,000 $ 757,000 0 $ 210,000 273,500 273,500 $ 757,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format ? And Fast answering please and explain proper steps by Step.
![Required Information
[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 capital:
Nonrecourse liabilities
Tatsuki*
Robert*
Totals
Assets:
Cash
Investments
Land
Totals
Capital:
Nonrecourse Debt
Capital-Tatsuki
Capital-Robert
Capital-Dave
Totals
*Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their
respective shares of nonrecourse liabilities.
Note: Leave no answer blank. Enter zero if applicable.
Cirque, LLC
Balance Sheet
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.
$
$
0 $
0 $
$ 180,000
130,000
230,000
$540,000
704(b)/FMV
Basis
$ 210,000
165,000
165,000
$ 540,000
0
Fair Market
Value
0
$ 180,000
157,000
420,000
$ 757,000
$ 210,000
273,500
273,500
$ 757,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32c43a2c-3afb-4fa3-86aa-61c694b3c500%2Fbbee5665-0b23-4d58-ae87-e249d97cf860%2Fr2oq9g_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[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 capital:
Nonrecourse liabilities
Tatsuki*
Robert*
Totals
Assets:
Cash
Investments
Land
Totals
Capital:
Nonrecourse Debt
Capital-Tatsuki
Capital-Robert
Capital-Dave
Totals
*Assume that Tatsuki's basis and Robert's basis in their LLC interests equal their tax basis capital accounts plus their
respective shares of nonrecourse liabilities.
Note: Leave no answer blank. Enter zero if applicable.
Cirque, LLC
Balance Sheet
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.
$
$
0 $
0 $
$ 180,000
130,000
230,000
$540,000
704(b)/FMV
Basis
$ 210,000
165,000
165,000
$ 540,000
0
Fair Market
Value
0
$ 180,000
157,000
420,000
$ 757,000
$ 210,000
273,500
273,500
$ 757,000
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