Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES

v3.7.0.1
FEDERAL AND STATE INCOME TAXES
 12 Months Ended
Feb. 28, 2017
Income Tax Disclosure [Abstract]  
FEDERAL AND STATE INCOME TAXES

NOTE 9  FEDERAL AND STATE INCOME TAXES

 

The (benefit) provision for income taxes at February 28, 2017, and February 29, 2016 consisted of:

 

    2017   2016  
           
State income tax:          
Current, net of refund   $ 2,004   $ 1,867  
Federal (benefit) income tax:              
Deferred     (40,689 )   (125,496 )
Current     (203,015 )   483,335  
Total   $ (241,700 ) $ 359,706  

 

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:

 

    2017   2016  
           
(Loss) income before tax   $ (776,699 ) $ 1,142,570  
Computed expected (benefit) tax   $ (264,078 ) $ 388,474  
State income and franchise tax/(refund)     1,323     1,232  
Other     21,055     (30,000 )
(Benefit) provision for taxes   $ (241,700 ) $ 359,706  

 

The components of deferred tax liabilities at February 28, 2017, and February 29, 2016, respectively, are as follows:

 

    2017   2016  
           
Deferred compensation cost   $ 49,228   $ 7,559  
Depreciation and amortization     (156,596 )   (173,700 )
Allowance for bad debts and other     24,946     43,030  
Deferred tax liabilities   $ (82,422 ) $ (123,111 )