All of the following events would cause an S corporation to cease qualifying as an S corporation except
A. Having more than 100 shareholders.
B. Transferring its stock to a corporation.
C. Transferring its stock to a resident alien.
D. Revoking the election with the consent of shareholders who, at the time the revocation is made, hold 55% of the stock.
Answer: C. Transferring its stock to a resident alien.