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Coach
Stock basis, which APIC is part of, can’t go negative. It can only be worthless.
Are you liquidating the Corp through 332 or what?
331. The shareholder has picked up applicable gains for distributions received. Final return would be 2022 but part of liquidation happened in 2021. This is solely for balance sheet presentation
Coach
Okay, so the point of the liquidation would be to distribute assets to the shareholder(s) and in the process, close out all equity accounts. I would expect your JE to be based on you saying the capital account in question is APIC:
DR APIC for X
DR R/E for Y-X
CR Distribution for Y
If there are other capital accounts such as C/S or P/S, I would expect them to be hit before R/E.