Reference no: EM132648222

Problem - 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. In general terms, how is the required taxable year determined (no calculations required)? Explain. If the required taxable year is, say, October 31, what alternative tax years could the new partnership consider?