Effective Tax Rate

6 Months Ended

Mar. 31, 2012

Effective Tax Rate

Effective Tax Rate

Note 15 – Effective Tax Rate

Income tax expense for the six months ended March 31 is as follows:

	2012		2011
Current	$	210,843	$	817,409
Deferred		819,822		149,131
Total	$	1,030,665	$	966,540

Actual income tax expense differs from the expected tax expense (computed by applying the federal corporate tax rate of 34% and state tax rate of 7.1% to income before income tax expense) as follows:

	2012			2011
Expected federal tax expense	$	969,553		$	900,254
State tax expense (net of federal)		202,465			187,994
Prior period AMT reconciliation		67,961			—
Other, net		(209,314	)		(121,708	)
Actual tax expense	$	1,030,665		$	966,540

The effective tax rate for the period ending March 31, 2012 was 40% instead of the expected rate of 41.1% due to reconciliation of a prior period tax liability offsetting the benefits of bonus depreciation. The effective tax rate for the period ending March 31, 2011 was 36.5% instead of the expected 41.1% primarily because of bonus depreciation.