If I understand your question correctly, you were asking about where to enter, in the recipient's return, the Code 17AC amount, instead of where to enter the info in the S Corp return to generate the info on the K-1 under the Code.
I don't think you enter the Code 17AC amount in the recipient's return. The info is primarily for the K-1 recipient to do the Sec 448(c) test for the purpose of determining whether the Taxpayer qualifies for various exemptions. The main criterion for the test is for the three-year average to be under $25 million. Therefore, if the K-1 recipient has income in the range, I'd keep the info in the permanent file or in the tax file permanently to perform the three-year average test.
Now that last night's bourbon wears off, I should add that, in my practice, my clients have the default position that they qualify for 448(c) related exemptions. I would keep the gross income info (including Code 17AC) for any client within that range of gross income, as they may flunk the test, rendering those exemptions not available to them.