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FEDERAL AND STATE INCOME TAXES | 10 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
FEDERAL AND STATE INCOME TAXES | NOTE 8 FEDERAL AND STATE INCOME TAXES The provision (benefit) for income taxes at December 31, 2017, and February 28, 2017 consisted of:
|  | December 31, 2017 |  | February 28, 2017 |
State income tax: |  |  |  |  |
Current, net of refund |  | $ | 1,670 |  | $ | 2,004 |
Federal income (benefit) tax: |  |  |  |  |  |  |
Deferred |  |  | (47,327 | ) |  | (40,689 | )
Current |  |  | 448,220 |  |  | (203,015 | )
Total |  | $ | 402,563 |  | $ | (241,700 | )
The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 34% is as follows:
|  | December 31, 2017 |  | February 28, 2017 |
Income (loss) before tax |  | $ | 1,307,520 |  | $ | (776,699 | )
Computed expected tax (benefit) |  | $ | 444,557 |  | $ | (264,078 | )
State income and franchise tax/(refund) |  |  | 1,670 |  |  | 1,323 |
Reduction in deferred tax from change in tax rate |  |  | (13,420 | ) |  | — |
Other |  |  | (30,244 | ) |  | 21,055 |
Provision (benefit) for taxes |  | $ | 402,563 |  | $ | (241,700 | )
The components of deferred tax liabilities at December 31, 2017, and February 28, 2017, respectively, are as follows:
|  | December 31, 2017 |  | February 28, 2017 |
Deferred compensation cost |  | $ | 33,987 |  | $ | 49,228 |
Depreciation and amortization |  |  | (69,550 | ) |  | (156,596 | )
Allowance for bad debts and other |  |  | 13,888 |  |  | 24,946 |
Deferred tax liabilities |  | $ | (21,675 | ) | $ | (82,422 | )
New Tax Legislation On December 22, 2017, the President of the United States (“U.S.”) signed into law the Tax Cuts and Jobs Act tax reform legislation. This legislation makes significant change in U.S tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the highest U.S corporate tax rate from the current rate of 35% to 21%, effective January 1, 2018. As a result of the enacted law, the Company was required to revalue deferred tax assets and liabilities at the enacted rate. This revaluation resulted in an additional benefit of $13,420 included in income tax expense and corresponding reduction in the net deferred tax liabilities. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on the 2017 financial statements.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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