Indicate in each of the following independent situations whether the taxpayer can accomplish what is proposed. Provide adequate authority for your answer including any special elections that are needed or requirements that must be satisfied. Assume all individuals use the calendar year as their tax year unless otherwise indicated.

a. Will and Carol form Classic Corporation. They want the corporation to adopt a fiscal year ending January 31 as its tax year to provide a maximum deferral for their income. The corporation makes an S election for its initial tax year ending January 31, 2020.

b. Mark and Dennis have owned and operated the Plastic Corporation for several years. Plastic has used a fiscal year ending June 30 since its organization as a C corporation because it conforms to the corporation's natural business year. The corporation makes an S election for its tax year beginning July 1, 2019.