Dave LaCroix recently received a 10 percent capital and profits Interest in Cirque Capital LLC In...
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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 Debt Lance Robert Totals Banis $210,000 100,000 290,000 $600,000 $230,000 185,000 185,000 Fair Market Value $ 210,000 126,000 420,000 $ 756,000 $ 230,000 263,000 263,000 $600,000 $ 756,000 "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. Assets Cash Investments Land Totals Capital Nonrecourse Debt Capital-Lance Capital-Robert Capital-Dave Totals Cirque, LLC Balance Sheet Tax Basis S $ 5 210,000 $ 100,000 290,000 600,000 $ 0 704(b)/FMV 210,000 126,000 420,000 756,000 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 Debt Lance Robert Totals Banis $210,000 100,000 290,000 $600,000 $230,000 185,000 185,000 Fair Market Value $ 210,000 126,000 420,000 $ 756,000 $ 230,000 263,000 263,000 $600,000 $ 756,000 "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. Assets Cash Investments Land Totals Capital Nonrecourse Debt Capital-Lance Capital-Robert Capital-Dave Totals Cirque, LLC Balance Sheet Tax Basis S $ 5 210,000 $ 100,000 290,000 600,000 $ 0 704(b)/FMV 210,000 126,000 420,000 756,000
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Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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