How is cash treated when dissolving an S corp - as capital gain on K-1 and also on Schedule 1 of 1040?

2017  1120s return listed part of the cash which is in the final closing of the account as ordinary income on the K-1.  Also their are two partners with 50% base each. Should cash distributed in the dissolution be treated as capital gains on the K-1 and also on Schedule 1 of their 1040 as capital gain (minus their base)and also minus the amount that was included on the 2017 return?