Missy is one of 100 unrelated shareholders of Dalmatian, an S corporation. She is considering…

Missy is one of 100 unrelated shareholders of Dalmatian, an S corporation. She is considering selling her shares. Under the following alternative scenarios, would the S election be terminated? Why or why not? a) Missy wants to sell half her shares to a friend, a U.S. citizen, so they can rename their corporation 101 Dalmatians. b) Missys mothers family wants to be involved with the corporation. Missy splits half her shares evenly among her aunt, uncle, grandfather, and two cousins. c) Missy sells half her Dalmatian stock to her husbands corporation.

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