Closed company and received final K-1: how to enter distribution in excess of basis

[bill334]

shut down S Corp, received final K-1.  (not a sale; just shut down the company).   I understand that the distribution in excess of basis appears on Form 8949.  

Let's say the final K-1 shows: 

Distributions:  2500

Stock Basis before Distributions:  500

Gain recognized on excess distributions:  2000

On the Form 8949, should this appear as:

Proceeds: 0

Cost or other basis: -2000

OR, on the Form 8949 should this be:

Proceeds:  2500

Cost or other basis: 500

I understand the tax effect is identical.  How should it appear on the form?

[JamesG1 · Accepted solution]

Report on 8949 in this way.

Proceeds    $2,500

Basis          $   500

Gain           $2,000