Yes.

That $4200 was 1st year C-corp losses before company changed to S-corp on 2nd year.  He had losses on most years.  In 2024, company dissolved (also net losses in 2024; no assets other than bank account).  After paying all liabilities, company only have $235 left in the bank.  So, shareholder received $235 distribution.

Can he claim $4200 capital losses on his Form 1040?