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Red, White, and Blue are unrelated corporations engaged in real estate development. The three corporations formed a joint venture (treated as a partnership) to develop a tract of land.

Tax Year Ending Interest in Joint Venture Red March 31 60% Blue June 30 20% White October 31 20%

The majority interest partners' rule will apply in determining the partnership's tax year. Therefore, the partnership will use the same tax year as Red Corporation.

A. The following data is provided regarding ownership interests.

Tax Year Ending Interest in Joint Venture Red October 31 30% Blue January 31 30% White September 30 40%

Complete the tables below to determine the tax year the joint venture must adopt using the least aggregate deferral method.

Note: Carry the product answers out to one decimal place. Enter the product as a decimal (for example, 5.6). If an amount is zero, enter 0.

Test for Fiscal Year Ending October 31 Partner Year-End Date Profit % Months of Deferral Product Red 10/31 30 ? ? Blue 1/31 30 ? ? White 9/30 40 ? ? Aggregate deferral months

Test for Fiscal Year Ending January 31 Partner Year-End Date Profit % Months of Deferral Product Red 10/31 30 ? ? Blue 1/31 30 ? ? White 9/30 40 ? ? Aggregate deferral months

Test for Fiscal Year Ending September 30 Partner Year-End Date Profit % Months of Deferral Product Red 10/31 30 ? ? Blue 1/31 30 ? ? White 9/30 40 ? ? Aggregate deferral months

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