Jason Is One of 100 Shareholders in Jace Corporation

question 130

Essay

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.

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Definitions:

Naval Bases

Designated areas where a country's naval ships, personnel, and resources are stationed and maintained.

Carved Up

A colloquial expression meaning divided or partitioned, often referring to territories or areas split between different powers or interests.

European Delegates

Representatives from European countries who participate in international meetings, conferences, or organizations.

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The world's second-largest and second-most populous continent, rich in cultural and geographical diversity.