27. LO.1 Red, White, and Blue are unrelated corporations engaged in real estate development.

The three corporations formed a joint venture (treated as a partnership) to develop a tract of land. Assuming that the venture does not have a natural business year, what tax year must the joint venture adopt under the following circumstances?

Tax Year Ending Interest in Joint Venture

a. Red March 31 60%

Blue June 30 20%

White October 31 20%

b. Red October 31 30%

White September 30 40%

Blue January 31 30%