Income Taxes

12 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

(8) Income Taxes

Income tax benefit attributable to income from continuing operations consists of:

	2014		2013
Current income tax provision:
Federal	$	358,172	$	256,596
State		45,871		23,823
		404,043		280,419
Deferred income tax provision:
Federal		30,587		65,772
State		2,840		6,106
		33,427		71,878
Income tax provision	$	437,470	$	352,297

The differences between income taxes as provided at the federal statutory tax rate of 34% and the Company’s actual income taxes are as follows:

	2014		2013
Expected federal income tax expense at
Statutory rate	$	391,642	$	352,067
State income tax expense, net of federal
income tax effect		23,821		21,427
Other – meals and entertainment		9,389		8,650
Other		12,618		(29,847	)
Income tax provision	$	437,470	$	352,297

Tax assets are recognized in the balance sheet if it is more likely than not that they will be realized on future tax returns. As of October 31, 2014 and 2013, the net deferred tax assets were $46,196 and $79,623, respectively. The Company determined it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets of October 31, 2014 and 2013 and no valuation allowance is deemed necessary. The realization of deferred tax assets will depend on the Company’s ability to continue to generate taxable income in the future.

The significant components of the net deferred income taxes at October 31, 2014 and 2013 are as follows:

	2014			2013
Deferred tax assets
Inventory reserve	$	70,238		$	73,480
Other reserves and allowances		64,045			65,251
Capitalized inventory costs		91,094			114,400
Total deferred tax assets		225,377			253,131
Deferred tax liabilities
Property, plant, and equipment		(179,181	)		(173,508	)
Total gross deferred tax liabilities		(179,181	)		(173,508	)
Net deferred income taxes	$	46,196		$	79,623

For the years ended October 31, 2014 and 2013, the Company did not have any unrecognized tax benefits as a result of tax positions taken during a prior period or during the current period. No interest or penalties have been recorded as a result of tax uncertainties. Our evaluation was performed for the tax years ended October 31, 2006 through October 31, 2014, the tax years which remain subject to examination by tax jurisdictions as of October 31, 2014.