Working on a 1040 for a non-passive partner in a partnership that dissolved in 2020. The partner began the year with $16K of recourse liabilities, and ended with $0. They had an ending capital account with a negative balance of $24K. Their basis schedule shows losses suspended due to basis of $6K.
Am I correct in assuming I need to enter a gain on their 1040 Sch D of $18K ($24k capital account - $6k suspended losses)? If not, how would you advise entering this?