Question: Using Research Problem 1 found in CH 6 in the textbook, prepare a letter to Gray Chemical answering their question and a memo to the

Using Research Problem 1 found in CH 6 in the textbook, prepare a letter to Gray Chemical answering their question and a memo to the tax files as requested.

Note: Solutions to the Research Problems can be prepared by us Reuters Checkpoint online tax research database, which accompanies this textbook. Solutions can also be prepared by using research materials found in a typical tax library. Research Problem 1. Gray Chemical Company manufactured pesticides that were Com toxic. Over the course of several years, the toxic waste contaminated the air and Critic water around the company's plant. Several employees suffered toxic poisoning, and the Environmental Protection Agency cited the company for violations. In court, the judge found Gray guilty and imposed fines of $15 million. The company voluntarily set up a charitable fund for the purpose of bettering the environment and funded it with $8 million. The company incurred legal expenses in setting up the foundation and defending itself in court. The court reduced the fine from $15 million to $7 million

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