Derby Corporation is a calendar-year taxpayer that is owned equally by Vivian, Rob, Danny, and Doug Derby. At the close of business on May 31, Rob Derby sells his 25% stock interest to Paula Bryan. Which of the following statements about the S election is correct?

		Paula has 30 days to terminate the S election, otherwise the election remains in place for the entire year and all subsequent years.
		A new S election form must be filed by June 30 of the same year, with all shareholders consenting to the election. If a new S election is not filed, the election terminates on June 30 of that year.
		Paula must consent to the S election, otherwise the election terminates at the close of business on May 31.
		None of the above statements are correct.