General form of registration statement for all companies including face-amount certificate companies

FEDERAL AND STATE INCOME TAXES (Tables)

v3.10.0.1
FEDERAL AND STATE INCOME TAXES (Tables)
10 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes at December 31, 2017, and February 28, 2017 consisted of:

 

               
    December 31,
2017
  February 28,
2017
 
           
State income tax:          
Current, net of refund   $ 1,670   $ 2,004  
Federal income (benefit) tax:              
Deferred     (47,327 )   (40,689 )
Current     448,220     (203,015 )
Total   $ 402,563   $ (241,700 )
Schedule of reconciliation of income taxes

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:

 

               
    December 31,
2017
  February 28,
2017
 
           
Income (loss) before tax   $ 1,307,520   $ (776,699 )
Computed expected tax (benefit)   $ 444,557   $ (264,078 )
State income and franchise tax/(refund)     1,670     1,323  
Reduction in deferred tax from change in tax rate     (13,420 )    
Other     (30,244 )   21,055  
Provision (benefit) for taxes   $ 402,563   $ (241,700 )
Schedule of component of deferred tax liabilities

The components of deferred tax liabilities at December 31, 2017, and February 28, 2017, respectively, are as follows:

 

               
    December 31,
2017
  February 28,
2017
 
           
Deferred compensation cost   $ 33,987   $ 49,228  
Depreciation and amortization     (69,550 )   (156,596 )
Allowance for bad debts and other     13,888     24,946  
Deferred tax liabilities   $ (21,675 ) $ (82,422 )