XYZ, LLC, Has Several Individual and Corporate Members

Multiple Choice

XYZ, LLC, has several individual and corporate members.Abe and Joe, individuals with 4/30 year-ends, each have a 23 percent profits and capital interest.RST, Inc., a corporation with a 6/30 year-end, owns a 4 percent profits and capital interest, while DEF, Inc., a corporation with an 8/30 year-end, owns a 4.9 percent profits and capital interest.Finally, 30 other calendar year-end individual partners (each with less than a 2 percent profits and capital interest) own the remaining 45 percent of the profits and capital interests in XYZ.What tax year-end should XYZ use, and which test or rule requires this year-end?

A) 4/30, principal partners test.
B) 4/30, least aggregate deferral test.
C) 12/31, principal partners test.
D) 12/31, least aggregate deferral test.