Dilley Corporation Is an Electing S Corporation That Uses a Calendar

Dilley Corporation is an electing S corporation that uses a calendar year as its tax year. On October 31, Dilley's S election is terminated because of the acquisition of stock by an ineligible stockholder. Dilley Corporation shareholder Alan is allocated an S corporation loss for the year, which cannot be used because of the basis limitation. Alan will lose the unused loss if not used by

A) December 31 of this year.
B) March 15 of next year.
C) December 31 of next year.
D) October 31 of next year.