Doug, Kate, and Gabe Own Refiner Group, Inc IRefiner Group, Inc

Multiple Choice

Doug, Kate, and Gabe own Refiner Group, Inc., an electing S corporation. The shareholder's ownership percentages and fiscal year ends follow:
Which of the following statements is (are) correct?
$$\begin{array} { l l l } & \text { Ownership } & \text { Year End } \\\text { Doug } & 60 \% & \text { January } 31 \\\text { Kate } & 20 \% & \text { May } 31 \\\text { Gabe } & 15 \% & \text { September } 30\end{array}$$
I.Refiner Group, Inc. must use a calendar year.
II.Refiner Group, Inc. may elect to use a fiscal year ending January 31.
?

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