Cost and Depreciation Reserve is negative after member asset retired from Tax book

Summary:

Hello Experts,

We are looking for guidance on Member Asset Retirement.

Our scenario is we have a Group Asset with 2 Members

• Member A - DPIS 7/1/25 Cost 47,455
• Member B - DPIS 10/1/25 Cost 60,000
• Member B is retired in 4/30/26 for cost of 60,000 with no Proceeds or Cost of Sale.
• Depreciation Reserve at Retirement is 19287

The Expectation is that the group asset cost will revert back to 47455 after retirement. However, the Group asset cost and accumulated depreciation is (12,544). NBV ends up being zero with a negative Depreciable Basis amount

We have set Recognize Gain or Loss = Immediately when retired
Checked Recapture excess reserve and Limit net proceeds to cost