Provision For Income Taxes

6 Months Ended

Jun. 30, 2011

Note 10 – PROVISION FOR INCOME TAXES

The provision for income taxes consists of the following:

	For the Six Months Ended						For the Year Ended
	June 30,						December 31,
	2011			2010			2010
Current:
Federal	$	1,173,349		$	1,759,484			2,269,819
State and local		656,067			470,917			651,085
Total current		1,829,416			2,230,401			2,920,904
Deferred		( 156,040	)		( 290,465	)		( 96,918	)
Provision for income taxes	$	1,673,376		$	1,939,936			2,823,986

A reconciliation of the provision for income taxes and the income tax computed at the statutory rate is as follows:

	For the Six Months Ended						For the Year Ended
	June 30,						December 31,
	2011			2010			2010
Federal income tax expense computed at the statutory rate	$	1,313,994		$	1,663,664		$	2,180,228
State and local tax expense, net		367,146			234,870			651,085
Permanent differences		(73,711	)		( 92,868	)		( 117,247	)
Tax credits and other		65,947			134,270			109,920
Provision for income taxes	$	1,673,376		$	1,939,936		$	2,823,986

Amounts for deferred tax assets and liabilities are as follows:

	June 30,						December 31,
	2011			2010			2010
Non-current deferred tax assets (liabilities) arising from: Temporary differences -
Accumulated depreciation and amortization from purchase accounting adjustments	$	(3,601,105	)	$	(3,599,811	)	$	(3,673,296	)
Capital loss carry-forwards		271,568			337,016			271,568
Total non-current net deferred tax liabilities		(3,329,537	)		(3,262,795	)		(3,401,728	)
Current deferred tax assets arising from:
Unrealized losses on investments		12,377			95,488			30,320
Impairment of investments		---			---			4,232
Inventory		250,297			176,051			168,875
Allowance for doubtful accounts and discounts		131,702			117,710			125,043
Total current deferred tax assets		394,376			389,249			328,470
Net deferred tax liability	$	(2,935,161	)	$	(2,873,546	)	$	(3,073,258	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

+ Details