Income taxes

12 Months Ended

Dec. 31, 2011

Income taxes

Note 7 – Income taxes:

The components of the Company’s consolidated provision for income taxes are as follows:

	2011		2010
Federal – current	$	1,036,816	$	1,183,501
Federal – deferred		204,041		(60,321	)
State – current		12,036		134,886
State – deferred		26,999		(10,646	)
Total provision for income taxes	$	1,279,892	$	1,247,420

The reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes is as follows:

	2011			%	2010			%
Income Tax computed at statutory rate	$	1,229,083		34%	$	1,084,118		34%
State tax, net of federal benefit		23,793		.5%		89,025		3%
Loss attributable to noncontrolling interest		19,577		.5%		26,167		1%
Share based compensation		112,862		3%		128,807		4%
EPA civil penalty		-		0%		37,400		1%
Temporary adjustments		184,205		5%		17,768		1%
Other, permanent adjustments		(105,805	)	-3%		(111,545	)	-4%
Tax credits and prior year tax adj.		(183,823	)	-5%		(24,320	)	-1%
Provision for income taxes	$	1,279,892		35%	$	1,247,420		39%

The Company’s deferred tax asset and liability accounts consisted of the following at December 31, 2011 and 2010:

	2011			2010
Deferred taxes – current
Reserves for bad debts, inventories, and other accruals	$	123,000		$	155,306
Depreciation of property and equipment		(57,203	)		(27,630	)
Total deferred tax asset current	$	65,797		$	127,676
Deferred taxes - non-current
Depreciation of property and equipment		(250,191	)		(81,030	)
Total deferred tax liability non-current	$	(250,191	)	$	(81,030	)