How are the members of a Federal consolidated group affected by computations related to E & P?
A)E & P is computed solely on a consolidated basis.
B)Each member keeps its own E & P account.
C)Members' E & P balances are frozen as long 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.

Question

Quizplus · Accepted Answer

Each member of a Federal consolidated group maintains its own Earnings and Profits (E & P) account, even though they file a consolidated tax return.

How Are the Members of a Federal Consolidated Group Affected