For its first year of operations, marcus corporation reported pretax accounting income of $274,800. however, because of a temporary difference in the amount of $19,200 relating to depreciation, taxable income is only $255,600. the tax rate is 39%. what amount should marcus report as its deferred income tax liability in its balance sheet at the end of that year?

The common stock and debt of northern sludge are valued at $65 million and $35 million, respectively. investors currently require a return of 15.9% on the common stock and a return of 7.8% on the debt. if northern sludge issues an additional $14 million of common stock and uses this money to retire debt, what happens to the expected return on the stock? assume that the change in capital structure does not affect the interest rate on northern’s debt and that there are no taxes.