S-corp is terminated in 2024.  This S-corp had negative retained earnings (-$4200) when it changed from C-corp to S-corp.

At dissolution, S-corp distributed $235 to shareholder (the only cash asset left).  After this distribution, shareholder still has $4200 basis remained.  

My questions,

1.  Should S-corp issue Form 10699-Div for the $235 distribution when company terminated.
2.  Since shareholder still has $4200 basis remained, can he claims capital loss of $4200 on Form 1040, Sch D?

Thank you.