Balsa Inc. redeemed 10,000 shares of its common stock from William Wood Sr. One year later, Balsa issued 20,000 shares of stock to William Wood II (Sr.'s grandson) for $200,000. Balsa is a qualified small business in the retail business at the time the 20,000 shares were issued. Which of the following is true?

A.Only 5,000 shares (25%) are qualified small business stock.

B.Only 10,000 shares (50%) are qualified small business stock.

C.The 20,000 shares are qualified small business stock.

D.None of the 20,000 shares is qualified small business stock.