Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
B) The natural business year for fiscal- year election purposes is any tax year that ends within six months after the peak period of business.
C) A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
D) All of the above are false.