SQRLY LLC Has About 25 LLC Members

SQRLY LLC has about 25 LLC members. SwanCo (30% owner) and QuinnCo (16% owner) both have June 30 tax year ends. Royce, Inc.? Larry, Inc.? and Yolanda, Inc. each own 4% (12% total) and have September 30 taxable year ends. The other LLC members (42% total) each own interests of 4% or less and use the calendar year (December 31) . Which one of the following statements is true regarding the LLC's required taxable year end?

A) The taxable year is determined under the least aggregate deferral rule.
B) The taxable year is determined under the majority interest rule because a majority of partners have the same year end.
C) The taxable year is determined under the principal partner rule because both SwanCo and QuinnCo have the same taxable year.
D) The taxable year ends on December 31 because more LLC members use a calendar year than any other year.
E) There is no required taxable year because there are more than 20 partners (members) .