Did they sell the S-Corp, or did they sell the Assets out of the S-Corp?

If an asset sale, What types of gain were involved? If all of the gain is 1245 recapture, then it may be correct that all of the gain is being picked up in the year of sale.

Also the installment sale is being taxed at $10,600,

The return is showing tax liability on the 1120-S return of $10,600?