What WOULD YOU DO IN THIS SITUATION? Harry Baker formed Xeno Corporation on January 4, 2019. by selling stock to an ineligible shareholder, he may have The corporation filed a valid S corporation election on jeopardized the corporation's S election. Thus, Harry im- January 18, 2019, to be in effect for 2019. Harry, the cor- mediately contacted Pedro and persuaded Pedro to sell poration's sole shareholder, consented to the election. The his Xeno shares back to him (Harry). Harry hires you as his corporation had business ties to Mexico, and to strengthen these ties, Harry sold 25% of his Xeno shares to Pedro Gon- about the sale and repurchase of the Xeno shares. How zales on February 10, 2020. Pedro is one of Harry's business ever, Harry tells you not to worry because, by buying back associates and is a citizen and resident of Mexico. Harry the shares, he already has rectified the situation, and thus continued to operate Xeno as an S corporation through- the IRS need not be told about the transfers. How do you out 2020. Early in March 2021. Harry became aware that, advise Harry on this matter? REQUIREMENT: After reading the prompt, How would you advise Harry on the matter presented