Cerulean, Inc., Coral, Inc., and Crimson, Inc., form the Three Cs Partnership on January 1 of the current year. Cerulean is a 50% partner, and Crimson and Coral are 25% partners. For reporting purposes, Crimson uses a fiscal year with an October 31 year-end, Coral uses the calendar year, and Cerulean uses a fiscal year with a February 28/29 year-end.

a. How is the required taxable year determined? The partnership's required taxable year is determined under the first of three rules that applies. The Three Cs (can/ cannot) use the "majority partner" rule, (can/ cannot) the "principal partner" rule, and (can/ cannot) use least aggregate deferral rule.

b. If the required taxable year is, say, October 31, what alternative tax years could the new partnership consider? For each statement below select "True" or "False", whichever is applicable.

	No alternative tax years are available.
	If all partners, agree, any tax year may be selected.
	The partnership can can select July, August, or September.
	The partnership can appeal to the IRS to use a natural business year.