HDF, a calendar-year corporation, began business in Year 1. HDF made a valid S corporation election on December 1, Year 2. Assuming the eligibility requirements for S corporation status continued to be met throughout Year 3, on which of the following dates did HDF's S corporation status become effective?
A. January 1, Year 2.
B. December 1, Year 2.
C. January 1, Year 3.
D. December 1, Year 3.
Answer: C. January 1, Year 3.