Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.

Twenty years ago, Chemco Corporation developed, manufactured, and marketed Kepone, a chemical pesticide. As a result of manufacturing practices that violated state environmental standards, harmful levels of Kepone were discharged into the soil and groundwater. A state agency sued Chemco for damages, and the corporation was indicted for criminal negligence for the unlawful discharge of toxic substances. The judge imposed a $1 million fine on Chemco. After extensive meetings with the judge and prosecutors, Chemco created the Midwest Environment Foundation, the purpose of which is to alleviate the effects of Kepone waste. Chemco contributed $950,000 to this nonprofit organization, and the judge promptly reduced the fine to $50,000.

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