Sarah, Sue, and AS Inc

Multiple Choice

Sarah, Sue, and AS Inc.formed a partnership on May 1, 20X9, called SSAS, LP.Now that the partnership is formed, they must determine its appropriate year-end.Sarah has a 30 percent profits and capital interest while Sue has a 35 percent profits and capital interest.Both Sarah and Sue have calendar year-ends.AS Inc.holds the remaining profits and capital interest in the LP, and it has a September 30 year-end.What tax year-end must SSAS, LP, use for 20X9, and which test or rule requires this year-end?

A) 12/31, least aggregate deferral test.
B) 9/30, majority interest taxable year.
C) 12/31, majority interest taxable year.
D) 12/31, principal partners test.