10. Income Taxes

The income tax provisions are comprised of the following:

	Dec. 31 2016		Dec. 31 2015
Current:
Federal	$	448,462	$	6,516
State		-		4,200
Foreign		203,824		374,071
	$	652,286	$	384,787

Deferred
Federal	$	70,223	$	(63,433)
State		71,716		-
Foreign		(91,348)		48,242
		50,591		(15,191)
Total Income Tax Provision	$	702,877	$	369,596

The components of the net deferred tax asset at December 31 are as follows:

	2016		2015
Deferred tax assets:
Allowance for doubtful accounts	$	16,014	$	21,150
Inventory allowances		312,592		314,101
Accrued liabilities		403,049		372,172
Unicap 263A adjustment		170,765		170,765
Net operating loss carryforwards		438,075		511,403
Alternative minimum tax credit carryforwards		-		-
State investment tax credit carryforward		22,448		22,448
Foreign tax credit carryforward		559,469		916,121
Other foreign tax items		17,922		44,394
Foreign net operating loss carryforwards		541,983		424,164
Total deferred tax assets		2,482,317		2,796,718
Deferred tax liabilities:
Tax over book basis of capital assets		(740,627)		(1,004,437)
Undistributed Earnings from Subsidiaries		-		-
Other foreign tax items		-		-
Net deferred tax assets before valuation allowance	$	1,741,690	$	1,792,281
Less: Valuation allowance		(45,000)		(45,000)
Net deferred tax assets		1,696,690		1,747,281

The Company has net operating loss carryforwards of approximately $2,495,000 expiring in various years through 2025.

Income tax provisions differed from the taxes calculated at the statutory federal tax rate as follows:

	Years Ended December 31,
	2016		2015
Federal Taxes at statutory rate	$	450,464	$	444,471
State income taxes, net of Federal tax effect		67,768		66,867
Nondeductible expenses		51,741		46,523
Foreign taxes		132,905		(188,266)
Income tax provision	$	702,877	$	369,596

The Company files tax returns in the U.S., and in the U.K, Germany and Mexico foreign tax jurisdictions and also in various state jurisdictions in the U.S. The tax years 2013 through 2015 remain open to examination. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the year ended December 31, 2016 and 2015, the Company did not recognize expense for interest or penalties, and do not have any amounts accrued at December 31, 2016 and 2015, as the Company does not believe it has any uncertain tax positions.