XYZ, LLC has several individual and corporate members. Abe and Joe, individuals with 4/30 year-ends, each have a 23% profits and capital interest. RST, Inc., a corporation with a 6/30 year-end, owns a 4 percent profits and capital interest while DEF, Inc., a corporation with an 8/30 year-end, owns a 4.9 percent profits and capital interest. Finally, thirty other calendar year-end individual partners (each with less than a 2 percent profits and capital interest) own the remaining 45 percent of profits and capital interest in XYZ, What tax year-end should XYZ use and which test or rule requires this year-end?

A) 4/30, principal partners test

B) 4/30, least aggregate deferral test

C) 12/31, principal partners test

D) 12/31, least aggregate deferral test

Explain