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INCOME TAXES
 12 Months Ended
Dec. 31, 2011
INCOME TAXES [Abstract]  
INCOME TAXES
8           INCOME TAXES
The provision for income taxes consists of the following:

  Years ended December 31,
 
2011
2010
2009
Current:
     
Federal
$3,220,000
$435,000
$2,282,800
Prior year overaccrual
---
(157,000)
---
State
5,000
---
---
       
Deferred:
     
Federal
(103,000)
(265,000)
(367,800)
 
$3,122,000
$13,000
$1,915,000

 
The difference between the income tax provision (benefit) computed at the federal statutory rate and the actual tax provision (benefit) is accounted for as follows:

December 31,
2011
2010
2009
       
Taxes computed at the federal statutory rate
$3,583,000
$237,000
$1,993,000
State income tax, net of federal benefit
3,000
---
---
Prior year true-up
(61,000)
(157,000)
---
Permanent differences
(403,000)
(67,000)
(78,000)
Provision for Income Taxes
$3,122,000
$13,000
$1,915,000
 
The components of deferred income tax assets and liabilities are as follows:

Deferred Tax Assets :
2011
2010
Revenue recognition
$231,000
$---
Allowance for doubtful accounts
26,000
---
Deferred tax asset-current
257,000
---
Property and equipment
---
49,000
Deferred rent
141,000
---
Stock options
953,000
596,000
Interest rate swap
11,000
23,000
Deferred Tax Assets-non current
1,105,000
668,000
     
Deferred Tax Liabilities:
   
Revenue recognition
---
182,000
Prepaid expenses
125,000
---
Deferred Tax Liabilities-current
125,000
182,000
Property and equipment
660,000
---
Deferred tax liability-noncurrent
660,000
---
Net Deferred Tax Assets (Liabilities)
$577,000
$486,000

The Company recognized, for income tax purposes, a tax benefit of $438,000, $304,000 and zero for the years ended December 31, 2011, 2010 and 2009, respectively, for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded.  Such amounts have been added to additional paid-in capital in those years.

The Company did not account for the domestic production activity deduction when preparing the 2009 tax accrual.  The Company did take the domestic production activity deduction when preparing its 2009 federal income tax return, which resulted in an overaccrual of approximately $157,000.