USA Cash Withdrawn on the Refinance

[IDAR]

At the beginning of 2021 we had an asset (building/land) at the historical cost of $400,000 with a mortgage payable of $300,000, and loan from stockholders was $100,000.
During the year 2021 the member of the building refinanced his property and took some money out of the account.
At the end of 2021 building value was $400,000, refinanced mortgage value was $600,000 plus he took some money out.

How can we adjust the asset and mortgage payable on the balance sheet?

Its an LLC (rental property) but for tax purposes its a S Corporation.
The amount he withdrew from this account after he refinanced his property; Is it taxable income for him?

 

[BIG E]

You provide a number of facts that don't make sense.
I realize that I'm not answering your question directly - but Building and Land are usually shown separately on the balance sheet because Land is NOT depreciable whereas the building is. Each year a depreciation expense (based on straight line over either 27.5 or 39 years depending upon whether it's residential property or commercial property).
The member of the building who refinanced his property I assume is the same stockholder who loaned the business the $ 100,000.
What were the terms of the refinance? Who is liable for the refinanced amount - the shareholder or the LLC?
So from you are describing - $ 300,000 was loaned to the business and the shareholder took some of that money to repay his loan payable.
The asset doesn't get adjusted (increased) unless the additional loaned money was used for the improvement of the building.
To get the mortgage balance - the lending institution should provide a statement as to what the year ending balance is - and reconcile to that number. You would need to book a journal entry recording interest expense on the installments paid to increase the loan balance, and reduce it by the amount of principal that was paid on the loan.
What the shareholder took for "taking money out" should be posted to reduce his loan balance.