Company Z has $125,000 of taxable income from its operations, $5,000 of interest income, and $32,000 of dividend income from preferred stock it holds in other corporations. Its corporate tax rate is 25%. What is Company Z's tax liability? Assume a 50% dividend exclusion for taxes on dividends. a. $39,250 b. $40,500 c. $36,500 d. $32.500 e. $31,250