Sandra Harper, Who Resides in Ontario, Canada, Is a Canadian

Sandra Harper, who resides in Ontario, Canada, is a Canadian citizen. She would like to own stock in an S corporation where three of her friends from the United States own stocks. Is it possible for Sandra to own stock in the S corporation?

A) No, because she is neither a citizen nor a resident of the United States.
B) Yes, because anyone can own stock in an S corporation as long as he or she is willing to fill out the appropriate paperwork.
C) No, because stock in an S corporation cannot be held by more than three people.
D) Yes, because under the terms of the North American Free Trade Agreement (NAFTA) , Canadian citizens have the same rights to own shares of stock in an S corporation as American citizens.