USA Partnership purchases partner's interest and is now a single member LLC - how to show on final return

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A partnership redeemed a partner's entire interest for a very small amount (20k) compared to their capital account (200k). Now there is only one owner, so the business can no longer continue as a partnership.

Wondering how to show this liquidating distribution and subsequent change to a single-member LLC on the final partnership return. What happens to the remaining capital of the exiting partner? Do I zero out the Schedule L on the partnership return, even though the business is continuing with the one owner?

This is a new client and all this took place before they came on board with me.
 

BIG E

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Looks like your client has a $ 180,000 capital gain to report.
 

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