Note 13. Income Taxes

The components of the income tax provision for the years ended December 31, 2014 and 2013 are as follows:



	2014		2013

Current:
Federal	$	540	$	302
State		1		1
Deferred:
Federal		(60)		(47)
State		(21)		(24)
Total Federal and State Income Taxes	$	460	$	232

The provision for income taxes for the years ended December 31, 2014 and 2013 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:



	2014		2013

Computed “Expected” Federal Tax Expense	$	529	$	319
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		10		9
Credits		(47)		(70)
Domestic Production Activities Deduction		(17)		(18)
Permanent Differences		4		3
Other		(19)		0
Rate Change for Deferred Taxes		0		(11)
Total Federal and State Income Taxes	$	460	$	232

The components of the net deferred tax liability consist of:



	2014		2013

Deferred Tax Assets:
Vacation Accrual	$	33	$	27
Allowance for Doubtful Accounts		4		3
Stock Compensation		80		57
State Carryforward R&D Credit		31		12
Total Deferred Tax Assets	$	148	$	99

Deferred Tax Liabilities:
Prepaid Expenses	$	35	$	30
Depreciation and Amortization		54		91
Net Unrealized Gain on Investments		450		1,000
Total Deferred Tax Liabilities	$	539	$	1,121

Net Deferred Tax Liability	$	(391)	$	(1,022)

The Company is subject to the following material taxing jurisdictions: U.S. and Minnesota. The tax years that remain open to examination by the Internal Revenue Service are 2011 through 2014. We have no accrued interest or penalties related to uncertain tax positions as of January 1, 2014 or December 31, 2014 and uncertain tax positions are not significant.