Analyzing and Interpreting Tax Footnote (Financial Statement Effects Template) Fischer, Inc. reports total tax expense on its income statement for year ended December 31, 2010 of $161,768 and cash paid for taxes of $155,092. The tax footnote in the company's 10-K filing, reports the following deferred tax information. Deferred tax assets and liabilities consisted of the following (in thousands):

December 31 ($ thousands)	2010	2009
Deferred tax assets
State tax credits, net of federal tax impact	$ 7,000	$ --
Tax basis inventory adjustment	12,208	7,496
Inventory obsolescence reserves	9,056	11,200
Allowance for doubtful accounts and other reserves	35,984	28,168
Foreign net operating loss carryforward	43,668	37,904
Stock-based compensation	35,160	21,800
Intangible asset	1,488	4,272
Deferred rent	11,900	6,912
Deferred compensation	5,796	4,420
Other	10,836	12,604
Total deferred tax assets	173,096	134,776
Less: valuation allowance	(3,530)	--
Total net deferred tax assets	169,566	134,776
Deferred tax liabilities
Prepaid expenses	(7,460)	(4,532)
Property, plant and equipment	(12,416)	(23,132)
Total deferred tax liabilities	(19,876)	(27,664)
Total deferred tax assets, net	$ 149,690	$ 107,112

What proportion of the foreign net operating loss carryforward balance does the company believe will likely expire unused? (Assume that the valuation allowance relates to the foreign net operating loss carryforward balance. Round your answer to the nearest whole number.) Answer= 8% (Need Work)

(e) Use the financial statement effects template to record Fischer's income tax expense for the current fiscal year along with the changes in both deferred tax assets and liabilities. Assume that the amount needed to balance the tax transaction represents the amount payable to tax authorities.

	Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
Record tax expense, part cash and part deferred

Income Statement
Revenue	-	Expenses	=	Net Income