Here is where it gets confusing: "and included transfer of clients and medical equipment/instrumentation and chiropractic tables."

If your client sold the shares of the corporation, the corporation would still exist and still own that equipment. If that transfer is in fact what sold, then the shares were not also sold. Your client still has a corporation, which now has no reason to be in business and would be a shell and can be closed. Or, your client sold the equipment and assets, as well as an empty shell of a corporation.

This is another conflicting statement: "I know to set this up on his personal 1040 schedule D"

The corporation sold its assets, liabilities, and reason to exist and operate. That is not your client's personal 1040. If the shares were sold, then no assets, liabilities, or other changes happened. Or, you have both conditions: the corporation reports all its sales and your client reports the sale of shares of an empty corporation which still exists.