S-Corp Dissolution

[RayT]

S-Corp formed 7/2013, last year of activity 2014; no activity in 2015; desires dissolution as of 12/31/2015. Previously reported 3k depreciation of equipment over 3-5-7 years. $1,400 depreciated through 2014. The sole shareholder has assumed ownership of all assets reported as of January 1, 2016. QUESTION: With regard to recapture of depreciation, are all assets valued at market value or book value, at time of disposition? All comments appreciated.

[kathyc2]

FMV for calculating any gain, but if FMW is less than book value no taxable loss as it's a related party transaction.