how to do final 1065 for partnership liquidation

Technical topics regarding tax preparation.
#1
cl2018  
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my client converted llc to c corp on 1/2/2019.
questions:
1. based on my research, they need to file a short year final 1065 for just one day of 2019. am I right? or, I can simply amend 2018 1065 and make it final.
2. how to liquidate the partnership? client balance sheet is pretty straight forward, some inventory, some fixed assets and some credit card liablitieis and the rest is the equity
so, in liquidating the partnership, each of the two partners should get 50% of the distributions, or can I have them use any percentage between them to make thing simplier? right now, the ending capital account for one is $4000 and the other is $500. I assume that if I use 50% vs. 50% to distribute the property and assume liabilities, one partner will have gain and the other will have loss. I can let them select to distribute property and assume liabilities based on their ending capital account ratio which is 4000 vs. 500 or 8:1 so that each of them even out when getting the distributions.
3. how final 1065 and final k-1 work? should I simply input capital account beginnning and ending balance, distributions amount, nonrecourse liablities amount and let the client figure out capital gain/loss when filing their 1040 or should I come up with something on k-1 for them to illustrate the gain or loss?

any input or thoughts? Thank you so much!
 

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