NOTE 10. INCOME TAXES

The components of our provision for income taxes for our fiscal years 2015 and 2014 are as follows:

	2015		2014
Current:
Federal	$	1,270,000	$	1,008,000
State		294,000		248,000
Deferred:		1,564,000		1,256,000
Federal		81,000		63,000
State		9,000		7,000
		90,000		70,000
	$	1,654,000	$	1,326,000

A reconciliation of income tax computed at the statutory federal rate to income tax expense is as follows:

	2015			2014

Tax provision at the statutory rate of 34%	$	2,344,000		$	2,013,000
Non controlling interests		(605,000	)		(623,000	)
State income taxes, net of federal income tax		212,000			170,000
FICA tip credit		(313,000	)		(256,000	)
True up adjustment		(16,000	)		(7,000	)
Other permanent items		32,000			29,000
	$	1,654,000		$	1,326,000

We have deferred tax assets which arise primarily due to depreciation recorded at different rates for tax and book purposes offset by cost basis differences in depreciable assets due to the deferral of the recognition of insurance recoveries on casualty losses for tax purposes, investments in and management fees paid by limited partnerships, accruals for potential uninsured claims, bonuses accrued for book purposes but not paid within two and a half months for tax purposes, the capitalization of certain inventory costs for tax purposes not recognized for financial reporting purposes, the recognition of revenue from gift cards not redeemed within twelve months of issuance, allowances for uncollectable receivables, unfunded limited retirement commitments and tax credit carryforwards generated as a result of the application of alternative minimum taxes.

The components of our deferred tax assets at October 3, 2015 and September 27, 2014 were as follows:

	2015			2014

Current:
Reversal of aged payables	$	27,000		$	27,000
Capitalized inventory costs		23,000			29,000
Accrued bonuses		327,000			272,000
Accruals for potential uninsured claims		25,000			89,000
Gift cards		141,000			120,000
Limited partnership management fees		(168,000	)		(94,000	)
	$	375,000		$	443,000
Long-Term:
Book/tax differences in property and equipment	$	650,000		$	664,000
Limited partnership investments		213,000			227,000
Accrued limited retirement		40,000			34,000
	$	903,000		$	925,000