Provision For Income Taxes

3 Months Ended

Mar. 31, 2012

Provision For Income Taxes [Abstract]

Provision For Income Taxes

Note 10 – PROVISION FOR INCOME TAXES

The provision for income taxes consists of the following:

	For the Three Months Ended
	March 31,
	2012			2011
Current:
Federal	$	633,372		$	1,005,605
State and local		312,346			406,241
Total current		945,718			1,411,846
Deferred		(185,805	)		(119,129	)
Provision for income taxes	$	759,913		$	1,292,717

A reconciliation of the provision for income taxes and the income tax computed at the statutory rate is as follows:

	For the Three Months Ended March 31,
	2012				2011
	Amount		Percentage		Amount		Percentage
Federal income tax expense computed at the statutory rate	$	630,667		34.0%	$	1,094,286		34.0%
State and local tax expense, net		215,169		11.6%		305,756		9.5%
Permanent differences		(52,493)		(2.8%)		(58,415)		(1.8%)
Change in tax estimate		(33,430)		(1.8%)		(48,910)		(1.5%)
Provision for income taxes	$	759,913		41.0%	$	1,292,717		40.2%

Amounts for deferred tax assets and liabilities are as follows:

	March 31,						December 31,
	2012			2011			2011
Non-current deferred tax assets (liabilities) arising from:
Temporary differences -
Accumulated depreciation and amortization from purchase accounting adjustments	$	(3,562,647	)	$	(3,604,041	)	$	(3,671,285	)
Capital loss carry-forwards		167,690			271,568			167,690
Total non-current net deferred tax liabilities		(3,394,957	)		(3,332,473	)		(3,503,595	)
Current deferred tax assets arising from:
Unrealized losses (gain) on investments		(35,329	)		24,384			6,890
Impairment of investments		---			---			15,673
Inventory		232,324			212,089			220,408
Allowance for doubtful accounts and discounts		4,350			131,703			4,350
Allowance for promotions		65,249
Capital  loss carry-back		91,369			---			91,369
Total current deferred tax assets		357,963			368,176			338,690
Net deferred tax liability	$	(3,036,994	)	$	(2,964,297	)	$	(3,164,905	)