WQ Corporation, a closely held family business, has not paid a dividend for the last seven years. Each year, the minutes of the board of directors' December meeting state that WQ must accumulate after-tax income to pay for a new manufacturing facility. Until plans for construction are finalized, WQ has been investing its excess cash in marketable securities. This year, WQ curtails its manufacturing business and abandons its plan for the new facility.
Identify the tax issue or issues suggested by the following situations, and state each issue in the form of a question.