So, to clarify (please correct me if I'm wrong): the FMV of the asset was $22,000, and the gain would then be split evenly between the two members just like normal.

1)  Because this sale at FMV is to the outgoing shareholder, this would be listed as a related party transaction correct?

2) Because the shareholders agreed this would be the way the remaining member would "buy" the outgoing member's stock, is it ok for the outgoing shareholder's K-1 to show a stock basis at the end of the year, even if it is his final K-1?