Business & farm

Yes, let's answer these questions individually.

1. All box L is entered in a screen titled Enter Capital Account Information. I have included a screenshot on how to record the information you have just given to me.
2. The gain of the distribution adds to your basis of your capital account but does not affect your tax return.
3. The decrease reduces your basis by (5124).
4. Lastly, your distributions should be reported as a negative number. 

Now you capital account should be zero since you no longer a partner in the firm, which is what it should be. The only time this information is taxable is if your distributions were in excess of your basis in your capital account. If this was the case, then the excess would have been taxable to you. in your case, this isn't an issue.  Here is how to report the information in your return.