Fern, Inc, Ivy Inc

question 153

Multiple Choice

Fern, Inc., Ivy Inc., and Jason formed a general partnership.Fern owns a 50% interest and Ivy and Jason each own 25% interests.Fern, Inc.files its tax return on a July 1 - June 30 fiscal year; Ivy Inc.files on a September 1 - August 31 fiscal year; and Jason is a calendar year taxpayer.Which of the following statements is true regarding the taxable year the partnership can choose?

• A)The partnership must choose the calendar year because it has no principal partners.
• B)The partnership must choose a June 30 year-end because Fern, Inc.is a majority partner.
• C)The partnership can request permission from the IRS to use a January 31 fiscal year if it can establish that is a natural business year.
• D)The partnership cannot use the "least aggregate deferral" method to determine its taxable year.
• E)None of the above.

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Definitions:

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The upper house of the colonial legislature in the Province of Pennsylvania, serving an advisory role to the colonial governor.

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