XML 72 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
Provision For Income Taxes
 12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
Note 10 - Provision For Income Taxes

The provision for income taxes consists of the following:

 

   

For the Years Ended

December 31,

  
    2014     2013     2012  
Current:                        
Federal   $ 2,142,526     $ 2,551,505     $ 2,757,332  
State and local     819,478       554,174       882,640  
Total current     2,962,004       3,105,679       3,639,972  
Deferred     (719,778 )     (238,804 )     (434,896 )
Provision for income taxes   $ 2,242,226     $ 2,866,875     $ 3,205,076  

  

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

 

    2014     2013     2012
    Amount     Percentage     Amount     Percentage       Amount     Percentage
Federal income tax expense computed at the statutory rate   $ 1,427,534       34.0 %   $ 2,666,223       34.0 %   $ 3,000,457     34.0 %
State and local tax expense, net     214,970       5.1 %     744,974       9.5 %     838,363     9.5 %
U.S. domestic manufacturers’ deduction & other permanent differences     463,646       11.0 %     (455,442 )     (5.8 )%     (427,525 )   (4.9 )%
Additions for tax positions of prior years     215,102       5.1 %     0       0 %     0     0 %
Change in tax rates     (138,008 )     (3.2 )%     0       0 %     0     0 %
Change in tax estimate     58,982       1.4 %     (88,880 )     (1.1 )%     (206,219 )   (2.2 )%
Provision for income taxes   $ 2,242,226       53.4 %   $ 2,866,875       36.6 %   $ 3,205,076     36.4 %

  

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

    2014     2013     2012  
Balance at January 1   $ —     $ —     $ —  
Additions for tax positions of prior years     215,102       —       —  
Balance at December 31   $ 215,102     $ —     $ —  

 

The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended December 31, 2014, 2013, and 2012, the Company recognized approximately $64,600, $-, and $- in interest and penalties, respectively. The Company had approximately $64,600 and $- for the payment of interest and penalties accrued at December 31, 2014, and 2013, respectively.

 

Amounts for deferred tax assets and liabilities are as follows:

 

    December 31,  
    2014     2013     2012  

Non-current deferred tax assets (liabilities) arising from:

Temporary differences -

                  
                   
Accumulated depreciation and amortization   $ (2,075,095 )   $ (2,896,058 )   $ (3,164,716 )
Capital loss carry-forwards     0       52,632       136,198  
Total non-current net deferred tax liabilities     (2,075,095 )     (2,843,426 )     (3,028,518 )
Current deferred tax assets arising from:                        
Capital loss carry-forward     8,620       0       0  
Unrealized losses (gain) on investments     127,234       (7,589 )     (41,260 )
Inventory     233,366       307,910       265,072  
Allowance for doubtful accounts and discounts     39,120       21,750       10,875  
Total current deferred tax assets     408,340       322,071       234,687  
Net deferred tax liability   $ (1,666,755 )   $ (2,521,355 )   $ (2,793,831 )