Fischer, Inc. reportstotal tax expense on its income statement for year ended December31, 2010 of $80,884 and cash paid for taxes of $77,546.
The tax footnote in the company's 10-K filing, reports thefollowing deferred tax information.
Deferred tax assets and liabilities consisted of the following (inthousands):
| December 31 ($ thousands) | 2010 | 2009 |
|---|
| Deferred tax assets | | |
| State tax credits, net of federal tax impact | $ 3,500 | $ -- |
| Tax basis inventory adjustment | 6,104 | 3,748 |
| Inventory obsolescence reserves | 4,528 | 5,600 |
| Allowance for doubtful accounts and other reserves | 17,992 | 14,084 |
| Foreign net operating loss carryforward | 21,834 | 18,952 |
| Stock-based compensation | 17,580 | 10,900 |
| Intangible asset | 774 | 2,136 |
| Deferred rent | 5,950 | 3,456 |
| Deferred compensation | 2,898 | 2,210 |
| Other | 5,418 | 6,302 |
| Total deferred tax assets | 86,548 | 67,388 |
| Less: valuation allowance | (3,530) | -- |
| Total net deferred tax assets | 83,018 | 67,388 |
| Deferred tax liabilities | | |
| Prepaid expenses | (3,730) | (2,266) |
| Property, plant and equipment | (6,208) | (11,566) |
| Total deferred tax liabilities | (9,938) | (13,832) |
| Total deferred tax assets, net | $ 73,080 | $ 53,556 |
Use the financialstatement effects template to record Fischer's income tax expensefor the current fiscal year along with the changes in both deferredtax assets and liabilities. Assume that income taxes payableincreased by $22,862 thousand.
Record tax expense, part cash and part deferred on the balancesheet below:
Cash Asset:
+Non Cash Asset:
=Liabilities:
+ContributedCapital:
+Earned Capital :
