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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | 7. Income Taxes The amounts of income tax expense (benefit) reflected in operations is as follows:
|  | 2019 |  |  | 2018 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (82,673 | ) |  | $ | (118,269 | )
State |  |  | 109,593 |  |  |  | 44,315 |
Foreign |  |  | 887,556 |  |  |  | 618,930 |
Total: |  | $ | 914,476 |  |  | $ | 544,976 |
Deferred: |  |  |  |  |  |  |  |
Federal |  | $ | 92,446 |  |  | $ | 311,608 |
State |  |  | 22,634 |  |  |  | 76,290 |
Total: |  |  | 115,080 |  |  |  | 387,898 |
Total Income Tax Expense: |  | $ | 1,029,556 |  |  | $ | 932,874 |
The current state tax provision was comprised of taxes on income, the minimum capital tax and other franchise taxes related to the jurisdictions in which the Company's facilities are located. A summary of United States and foreign income before income taxes follows:
|  | 2019 |  |  | 2018 |
United States |  | $ | 800,796 |  |  | $ | 1,928,627 |
Foreign |  |  | 5,742,368 |  |  |  | 3,602,597 |
Total: |  | $ | 6,543,164 |  |  | $ | 5,531,224 |
As discussed in Note 11 below, for segment reporting, direct import sales are included in the United States segment. However, the revenues are earned by our Hong Kong subsidiary and related income taxes are paid in Hong Kong whose rate approximates 16.5%. As such, income of the Asian subsidiary is included in the foreign income before taxes. The following schedule reconciles the amounts of income taxes computed at the United States statutory rates to the actual amounts reported in operations:
|  | 2019 |  |  | 2018 |
Federal income taxes at 21% statutory rate |  | $ | 1,365,124 |  |  | $ | 1,146,673 |
State and local taxes, net of federal income tax effect |  |  | 109,593 |  |  |  | 95,278 |
Permanent items |  |  | (137,051 | ) |  |  | (75,022 | )
Effect of federal rate change on deferred taxes |  |  | — |  |  |  | (111,324 | )
Foreign tax rate difference |  |  | (209,216 | ) |  |  | (59,232 | )
Change in deferred income tax valuation allowance |  |  | (98,894 | ) |  |  | (63,499 | )
Provision for income taxes: |  | $ | 1,029,556 |  |  | $ | 932,874 |
The following summarizes deferred income tax assets and liabilities:
|  | 2019 |  |  | 2018 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Plant, property and equipment |  | $ | 1,022,898 |  |  | $ | 847,162 |
|  |  | 1,022,898 |  |  |  | 847,162 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Asset valuations |  |  | 604,755 |  |  |  | 575,920 |
Pension |  |  | 81,561 |  |  |  | 105,647 |
Other |  |  | 287,115 |  |  |  | 278,948 |
|  |  | 973,431 |  |  |  | 960,515 |
Net deferred income tax (liability) asset: |  | $ | (49,467 | ) |  | $ | 113,353 |
On January 22, 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The Company considers any potential GILTI as an expense in the period the tax is incurred. In 2019, the Company evaluated its tax positions for years which remain subject to examination by major tax jurisdictions, in accordance with the requirements of ASC 740 and as a result, concluded no adjustment was necessary. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company’s evaluation of uncertain tax positions was performed for the tax years ended December 31, 2016 and forward, the tax years which remain subject to examination by major tax jurisdictions as of December 31, 2019. Due to the uncertain nature of the realization of the Company's deferred income tax assets based on past performance of its German subsidiary and carry forward expiration dates, the Company has recorded a valuation allowance for the amount of deferred income tax assets which are not expected to be realized. This valuation allowance, all of which is related to deferred tax assets resulting from net operating losses of the Company’s German subsidiary, is subject to periodic review, and, if the allowance is reduced, the tax benefit will be recorded in future operations as a reduction of the Company's tax expense.

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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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