How are the members of a federal consolidated group affected by computations related to e & p?

a. each member keeps its own e & p account.

b. e & p is computed solely on a consolidated basis. c. members’ e & p balances are frozen as big as the consolidation election is in place.

d. consolidated e & p is computed as the sum of the e & p balances of each of the group members, computed on the last day of the tax year.

Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)