Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES

v2.4.0.6
FEDERAL AND STATE INCOME TAXES
 12 Months Ended
Feb. 29, 2012
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 29, 2012 and February 28, 2011:


                 

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

State income tax:

 

 

 

 

 

 

Deferred

 

$

-

 

 

$

84,210

 

Current

 

 

2,000

 

 

 

1,691

 

Federal income tax:

 

 

 

 

 

 

 

 

Deferred

 

 

167,004

 

 

 

403,133

 

Current, including credit to additional paid-in capital

 

 

296,287

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total

 

$

465,291

 

 

$

489,034

 


The Company had income tax carryforwards, all of which were fully utilized by February 29, 2012.


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:


                 

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

Income before tax

 

$

1,300,573

 

 

$

1,193,119

 

Computed expected tax

 

$

442,195

 

 

$

405,661

 

State tax provision

 

 

2,000

 

 

 

80,479

 

Other

 

 

21,096

 

 

 

2,894

 

 

 

 

 

 

 

 

 

 

Provision for taxes

 

$

465,291

 

 

$

489,034

 


The components of deferred tax assets (liabilities) at February 29, 2012 and February 28, 2011, respectively, are as follows:


                 

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

Deferred Tax Assets (Liabilities):

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss carry forward

 

 

-

 

 

$

45,641

 

 

 

 

 

 

 

 

 

 

Primarily depreciation and amortization

 

 

(121,363

)

 

 

-

 

Deferred tax assets (liabilities)

 

$

(121,363

)

 

$

45,641