All of the following will result in the termination of a corporation's status as an S corporation except
A. Transferring stock to a partnership.
B. Having over 100 shareholders.
C. Having passive investment income of more than 25% of gross receipts in its initial year.
D. Creating a second class of common stock in its initial year.
Answer: C. Having passive investment income of more than 25% of gross receipts in its initial year.