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Jason Is One of 100 Shareholders in Jace Corporation

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Jason is one of 100 shareholders in Jace Corporation.The remaining 99 shareholders are unrelated individual U.S.residents.During the year, Jason gave several of his shares in Jace Corp.to his brother as a birthday present and to his best friend, Hal (unrelated to all shareholders in Jace Corp.), as a wedding present.After these gifts, Jace Corp.has 102 shareholders.Is Jace Corp.prohibited from electing to become an S corporation? Explain.


Definitions:

Behavioral

Relating to or concerned with the actions or activities of living organisms in response to external or internal stimuli.

Situational

Related to or dependent upon a specific context, circumstances, or conditions.

Organizational Fit

The compatibility between an individual's values, skills, and behavior and the culture or requirements of an organization.

Job Offer

A proposal by an employer to a prospective employee to take up a position of employment, typically specifying the terms of employment.

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