Provision For Income Taxes

3 Months Ended

Mar. 31, 2014

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,
	2014		2013
Current:
Federal	$	387,290	$	1,176,711
State and local		144,572		426,571
Total current		531,862		1,603,282
Deferred		(196,401)		(192,090)
Provision for income taxes	$	335,461	$	1,411,192

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,
	2014				2013
	Amount		Percentage		Amount		Percentage
Federal income tax expense computed at the statutory rate	$	338,517		34.0%	$	1,284,123		34.0%
State and local tax expense, net		94,586		9.5%		281,160		7.4%
U.S. domestic manufacturers' deduction & other permanent differences		(97,642)		(9.8%)		(154,091)		(4.0)%
Change in tax estimate		0		0		0		0.0%
Provision for income taxes	$	335,461		33.7%	$	1,411,192		37.4%

Amounts for deferred tax assets and liabilities are as follows:

	March 31,						December 31,
	2014			2013			2013
Non-current deferred tax assets (liabilities) arising from: Temporary differences -
Accumulated depreciation and amortization from purchase accounting adjustments	$	(2,739,704	)	$	(3,017,346	)	$	(2,896,058	)
Capital loss carry-forwards		50,537			108,212			52,632
Total non-current net deferred tax liabilities		(2,689,167	)		(2,909,134	)		(2,843,426	)
Current deferred tax assets arising from:
Unrealized losses (gain) on investments		(11,690	)		(52,952	)		(7,589	)
Inventory		328,300			316,028			307,910
Allowance for doubtful accounts and discounts		43,500			32,625			21,750
Total current deferred tax assets		360,110			295,701			322,071
Net deferred tax liability	$	(2,329,057	)	$	(2,613,433	)	$	(2,521,355	)