KORU Medical Systems Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES

FEDERAL AND STATE INCOME TAXES

12 Months Ended

Feb. 28, 2015

FEDERAL AND STATE INCOME TAXES [Abstract]

FEDERAL AND STATE INCOME TAXES

NOTE 9

FEDERAL AND STATE INCOME TAXES

The provision for income taxes consisted of at February 28, 2015, and February 28, 2014:

	2015		2014

State income tax:
Current, net of refund	$	1,000	$	984
Federal income tax:
Deferred		102,087		(49,000	)
Current		218,332		355,040
Total	$	321,419	$	307,024

The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 34% is as follows:

	2015			2014

Income before tax	$	1,074,536		$	1,010,453
Computed expected tax	$	365,342		$	343,554
State income and franchise tax/(refund)		660			984
Other		(44,583	)		(37,514	)
Provision for taxes	$	321,419		$	307,024

The components of deferred tax liabilities at February 28, 2015, and February 28, 2014, respectively, are as follows:

	2015			2014

Deferred compensation cost	$	(19,040	)	$	(17,595	)

Depreciation and amortization		(239,660	)		(137,405	)
Allowance for bad debts and other		10,093			—
Deferred tax liabilities	$	(248,607	)	$	(155,000	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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