Partnership termination - how to report assets

My LLC (taxed as a partnership) has closed effective 12/31/21 and all property owned by the partnership (vehicles) have been distributed to the two owners (husband and wife). I am not sure how to show this on my partnership return and K-1. Do I show it as an asset sale with a sales proceeds of zero? Turbo Tax seems to be forcing me to do this since I marked that this year is my final return.  Or do I show it as a distribution to the owners?

 

Also, what happens when owners sell the vehicle in the following year? Do they have to report this on their individual tax return?

 

Thanks!