Eligibility for S Corp Status. $1361($c$)$ rules:

Bobcat Corp. is a domestic corporation which has $120$ shares of voting

common stock outstanding. Determine whether Bobcat is eligible to elect S

Corporation status in the following scenarios:

$($a$)$ Bobcat has $99$ unrelated individual SH$,$ each of whom owns one share of

Bobcat stock. The remaining $21$ shares are owned by Dalton and his sister,

Sally, as joint tenants with the right of survivorship.

$($b$)$ Same as $($a$),$ above, except that of the remaining $21$ shares, Dalton and his

spouse, Mrs$.$ Dalton, own $11$ shares as community property. The remaining $10$

shares are owned $5$ by Dalton as his separate property and $5$ by Mrs$.$ Dalton as

her separate property.

$($c$)$ In $($b$),$ above, assume that the SH of Bobcat elected S corporation status.

What will the effect on Bobcat$$s election be if one year later Dalton dies and

bequeaths his interest in Bobcat Stock to John, a friend?

$($d$)$ Assuming Bobcat Corp has three shareholders: Liam, Sara, and Addie and

otherwise will qualify to make an S election, how do the following variations

affect Bobcat Corp.$$s eligibility?

$($i$)$ Liam and Sara each will receive $100$ shares of voting common stock.

Addie will receive $100$ shares of nonvoting preferred stock.

$($ii$)$ Liam and Sara each will receive $100$ shares of voting common stock.

Addie will receive $100$ shares of nonvoting common stock.

$($iii$)$ Liam and Sara each will receive $100$ shares of voting common stock.

Addie will receive $100$ shares of voting preferred stock.