Thanks for the helpful follow-up responses.
Having just one asset being distributed to multiple members may lead to an odd result, but here goes:
I have a similar situation. An LLC filed for bankruptcy and so was terminated. A new LLC was established with all of the assets and members moved to the new LLC. A cost basis for the transfer was established. I now have 2 Schedule K1s (Form 1065): One for the original showing 0% Capital at ending; and one for the Liquidation LLC . The original shows a withdrawal & distribution amount that went into the Liquidated LLC. How do I show disposition of the original LLC?