C-corp distributed/transfer life insurance policies to shareholders.  FMV of policies were reported in form 1099-Div to shareholders.  The FMVs are less than cash surrender value in the book (also less than premiums paid.)  I understand the losses are not tax deductible.  LIfe Insurance company did not issue 1099s to the corporation.

Do we have to report these transactions in Form 1120?  

If yes, where should I report?  Thanks.