Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES

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FEDERAL AND STATE INCOME TAXES
 12 Months Ended
Feb. 29, 2016
Income Tax Disclosure [Abstract]  
FEDERAL AND STATE INCOME TAXES

NOTE 9  FEDERAL AND STATE INCOME TAXES

 

The provision for income taxes consisted of at February 29, 2016, and February 28, 2015:

 

               
    2016   2015  
           
State income tax:          
Current, net of refund   $ 1,867   $ 1,000  
Federal income tax:              
Deferred     (125,496 )   102,087  
Current     483,335     218,332  
Total   $ 359,706   $ 321,419  

 

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:

 

               
    2016   2015  
           
Income before tax   $ 1,142,570   $ 1,074,536  
Computed expected tax   $ 388,474   $ 365,342  
State income and franchise tax/(refund)     1,232     660  
Other     (30,000 )   (44,583 )
Provision for taxes   $ 359,706   $ 321,419  

 

The components of deferred tax liabilities at February 29, 2016, and February 28, 2015, respectively, are as follows:

 

               
    2016   2015  
           
Deferred compensation cost   $ 7,559   $ (19,040 )
Depreciation and amortization     (173,700 )   (239,660 )
Allowance for bad debts and other     43,030     10,093  
Deferred tax liabilities   $ (123,111 ) $ (248,607 )