You are correct in how the balance sheet should be shown.
You will be reporting the FMV of the assets distributed on the 1099-DIV in the appropriate box.
The value of the assets before they were distributed will be reflected on the form 4797 when you show those as "sold".
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
