The statutory federal tax rate had been 35% for a number of years. Assume that late in the third quarter of 2020, a new rate, 40%, was approved as the new enacted rate, effective as of January 1, 2020 You are an assistant controller with Zenics Inc., a manufacturer of laser printers. The CEO of the company is concemed about what effect, if any, the new tax rate will have on 2020 earnings. At the beginning of the year, Zenics had a deferred tax asset of $10 million and a deferred tax liability of $6 million. There was no need for a valuation allowance, nor is it expected that any will be needed this year. Youes timate that pretax GAAP income will be approximately $5 million in 2020 and that taxable income will be about $7 million. The company is publicly traded, with 500,000 shares outstanding all year Chapter 18 Income Taxes Required Write und income change ehice on what actions the company might consider taking in the last few days of 2020 to minimize the impact. You hould also comment on what effect, if any, you think the tax rate change will have on the company's stock price. to the CEO, Rihanna Star, explaining what effect the tax rate increase will have on the balance sheet statement for the company for 2020. Be as specific as you can, especially with regard to the l have on earnings per share. If there is likely to be a negative impact on earnings, Rhianna would like your