1. (20 points) Using the following post-2018 tax cut tax rate schedule for Federal and Arkansas State corporate taxes, answer the following for XZY Corporation: Corporate Tax Rate Schedule - post 2018 Tax Cuts - Federal and Arkansas State Combined Range of taxable net income Range of taxable net corporate income to 3,000 6,000 >3000 to >6000 to 11,000 >11000 to 25,000 >25000 to 100,000 >100,000 Federal Marginal tax rate 21% 21% 21% 21% 21% 21% Arkansas Base tax rate + Marginal rate x amount over base) + (1%x amount over $0) 30 + (2%x amount over $3,000) 90 + (3%x amount over $6,000) 240 + (5%x amount over $11,000) 940 + (6%x amount over $25,000) 5,440+ (6.5% x amount over $100,000) For an Arkansas-based corporation that will earn $40,000 in 2018: a. What is the: (i) Federal marginal tax rate; (ii) Arkansas state marginal tax rate? (1). 21% (ii.) 6% b. What is the combined Federal and Arkansas state marginal tax rate? O c. What will the company's earnings after tax be after accounting for Federal and Arkansas state corporate taxes? I d. What will the effective tax rate be after accounting for Federal and Arkansas state corporate taxes? e. XYZ Corporation has cumulative preferred stock but stopped paying preferred dividends three years ago. If the company has surplus earnings this year, and the Board wants to pay preferred and common stock dividends beginning this year without making up for missed dividends from prior years, can it do so? If so, how much - and if not, why not?