INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2020

INCOME TAXES

Schedule of components of income tax expense from operations

	2020		2019
Current: Federal	$	1,690,956	$	1,139,927
Current: State		468,842		428,501
		2,159,798		1,568,428
Deferred: Federal		(14,270)		34,466
Deferred: State		(2,528)		6,106
		(16,798)		40,572
Income tax expense	$	2,143,000	$	1,609,000

Schedule of difference between the income tax expense and that which would be calculated using the statutory income tax rate

	2020		2019
Tax at statutory rate	$	1,575,422	$	1,010,517
Nondeductible business expenses		230,571		226,670
State income taxes, net of federal tax benefit		376,262		332,931
Other		(39,255)		38,882
	$	2,143,000	$	1,609,000

Schedule of temporary differences between the financial statement carrying balances and tax basis of assets and liabilities giving rise to a net deferred tax asset (liabilities)

	2020		2019
Deferred tax assets:
Allowance for doubtful accounts	$	210,734	$	215,925
Accrued expenses		1,243,132		796,542
Inventory		365,417		452,192
Intangible assets		15,803		71,849
Other		—		23,237
Net operating loss carry forwards - federal		35,545		63,983
Net operating loss carry forwards - state		716,241		723,306
Total gross deferred tax assets		2,586,872		2,347,034
Less: Valuation allowance		(716,241)		(723,306)
Total net deferred tax assets		1,870,631		1,623,728
Deferred tax liabilities:
Trade discounts		318,070		375,172
Property and equipment		2,437,337		2,150,130
Goodwill		921,799		921,799
Total deferred tax liabilities		3,677,206		3,447,101
Total net deferred income tax liability	$	1,806,575	$	1,823,373