v2.3.0.11
Income Taxes
 6 Months Ended
Jun. 30, 2011
Income Taxes  
Income Taxes

NOTE 10 – INCOME TAXES

Income Taxes:

The components of the provision for income taxes are as follows:

 

     June 30, 2011  

Current income tax expense/(benefit)

    $ (23,910 ) 

Deferred income tax expense

      116,339   
  

 

 

  

Total income tax expense

    $ 92,429   
  

 

 

  

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes are as follows:

 

     June 30, 2011  
     Amount     Impact on
Rate		  

Income tax expense (benefit) at federal rate

    $ 188,583        34.00 % 
  

 

 

    

 

 

  

State tax, net of Federal effect

      23,440        4.23 % 
  

 

 

    

 

 

  

Permanent Differences:

     

Meals & Entertainment

      11,607        2.09 % 

Officer's Life Insurance

      669        0.12 % 

Derivative expense

      (131,869 )      -23.77 % 
  

 

 

    

 

 

  

Total Permanent Differences

    $ (119,593 )      -21.56 % 
  

 

 

    

 

 

  

Rounding

    $ (1 )      0.00 % 
  

 

 

    

 

 

  

Total income tax expense/(benefit)

    $ 92,429        16.67 % 
  

 

 

    

 

 

  

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's net deferred income taxes are as follows:

 

     June 30, 2011  

Current Deferred Tax Assets:

   

Warranty Reserve

    $ 475,914   

Repurchase Reserve

      56,662   

Loan Loss Reserve

      58,677   

Accrued Legal fees

      1,911   

Allowance for Doubtful Accounts

      15,290   
  

 

 

  

Total Current Deferred Tax Asset

    $ 608,454   
  

 

 

  

Non-Current Deferred Tax Assets:

   

Goodwill impairment

      2,315,694   

Valuation Allowance

      (402,619 ) 
  

 

 

  

Total Non-Current Deferred Tax Assets

    $ 1,913,075   
  

 

 

  

Non-Current Deferred Tax Liability:

   

Accelerated Depreciation

    $ (68,572 ) 

Sale of Assets

      (341 ) 
  

 

 

  

Total Non-Current Deferred Tax Liability

    $ (68,913 ) 
  

 

 

  

Total Deferred Tax Assets (Liabilities) - Net

    $ 2,452,616