I am reviewing SCorp tax return for a client.  You may remember I asked several months ago about dissolution  of SCorp and what happens to the assets.   Yeah it's that tax return. 

So here is the transaction that I'm stuck on.  Before the decision to dissolve the corporation and it was actually the impetus for that decision , a shareholder (sibling to my client)  traded all his  SCorp shares  for land that was owned by SCorp.    I think this should be handled as decrease in land asset and increase to Treasury stock.    The preparer of the return reported on Form 4797 as land sold.  

In case it makes any difference value of stock $118,000  FMV of land $168,000 

Any help will be greatly appreciated.