Which of the Following Statements Is (Are) Correct?
I IComic Partnership Must Use a Calendar Year End,unless the IRS

question 21

Multiple Choice

Which of the following statements is (are) correct?
I.Critter Partnership may elect to use any of the three dates that the partners use.
II.Critter Partnership must use the tax year of the partner that creates the least amount of deferral.
a.Only statement I is correct.
b.Only statement II is correct.
c.Both statements are correct.
d.Neither statement is correct.
-Snoopy Corporation,Garfield Corporation,and Dogbert Corporation are partners in Comic Partnership.The partners' fiscal year ends and ownership interests follow:
$\begin{array}{lll}\text { Snoopy Corporation } & \text { March 31 FYE } & 15 \% \text { Interest } \\\text { Garfield Corporation } & \text { May 31 FYE } & 30 \% \text { Interest } \\\text { Dogbert Corporation } & \text { October 31 FYE } & 55 \% \text { Interest }\end{array}$
I.Comic Partnership must use a calendar year end,unless the IRS approves an election for a different tax year.
II.Comic Partnership must use a October 31 fiscal year end.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Stepparent

A person who is married to a child’s biological parent and assumes a parenting role but is not the child's biological mother or father.

Stepchildren

A spouse's kids from a prior union.

Stepfamilies

Families formed when one or both partners in a marriage have children from a previous relationship.

First Marriage

The initial marriage ceremony or union entered into by an individual.