Effective Tax Rate

3 Months Ended

Dec. 31, 2012

Effective Tax Rate

Effective Tax Rate

Note 15 – Effective Tax Rate

Income tax expense for the quarters ended December 31 is as follows:  

	2012			2011
Current	($	275,935	)	($	237,432	)
Deferred		414,528			616,031
Total	$	138,593		$	378,599

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	$	171,833		$	268,397
State tax expense (net of federal)		23,683			56,048
Net operating loss carryforwards		—			67,961
Other, net		(56,923	)		(13,807	)
Actual tax expense	$	138,593		$	378,599

The effective tax rate for the period ending December 31, 2012 was 27.4% instead of the expected rate of 41.1% mainly due to components of non-taxable income and reconciliation of tax rates for prior periods. The effective tax rate for the period ending December 31, 2011 was 48% instead of the expected rate of 41.1% due to reconciliation of a prior period tax liability.