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10. INCOME TAXES
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES

The provision for income taxes consists of:

 

   Year Ended December 31,
   2020  2019
Current tax expense:          
Federal  $719,341   $130,248 
State   367,819    63,496 
           
    1,087,160    193,744 
           
Deferred tax expense (benefit):          
Federal   227,248    591,493 
State   65,247    166,886 
    292,495    758,379 
           
Total  $1,379,655   $952,123 

 

The effective income tax rate differs from the federal statutory rate as follows:

 

   Year Ended December 31,
   2020  2019
Federal statutory rate   21.00%   21.00%
State taxes, net of federal benefit   6.79%   5.93%
Permanent differences   0.26%   0.47%
Tax credits   0.00%   0.00%
Prior year adjustments   0.76%   -0.01%
Changes in tax rates and other   0.09%   0.11%
    28.90%   27.50%

 

Permanent differences for the periods consist primarily of changes in tax treatment of meals and entertainment as well as political contributions. Changes in tax rate are described above.

 

Net deferred tax assets and (liabilities) at December 31 consist of:

 

   2020  2019
Deferred gain on sale-leaseback  $—     $—   
Various Accruals and Deferred Timing Differences   145,195    61,319 
Prepaids   (29,404)   (52,309)
Depreciation   (2,744,921)   (2,493,973)
Inventory   (621,969)   (473,643)
Net noncurrent deferred tax liability   (3,251,099)   (2,958,606)
Valuation allowance   —      —   
Net deferred tax liability  $(3,251,099)  $(2,958,606)