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. 28, 2013
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, 2013 and February 29, 2012:


                 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

State income tax:

 

 

 

 

 

 

Deferred

 

$

-

 

 

$

-

 

Current, net of refund in 2013

 

 

(11,173

)

 

 

2,000

 

Federal income tax:

 

 

 

 

 

 

 

 

Deferred

 

 

82,637

 

 

 

167,004

 

Current, including credit to additional paid-in capital in 2012

 

 

240,883

 

 

 

296,287

 

 

 

 

 

 

 

 

 

 

Total

 

$

312,347

 

 

$

465,291

 


The Company had operating loss carry forwards, 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:


                 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

Income before tax

 

$

1,038,110

 

 

$

1,281,184

 

Computed expected tax

 

$

352,957

 

 

$

435,603

 

State income and franchise tax/(refund)

 

 

(11,173

)

 

 

2,000

 

Other

 

 

(29,437

)

 

 

27,688

 

 

 

 

 

 

 

 

 

 

Provision for taxes

 

$

312,347

 

 

$

465,291

 


The components of deferred tax liabilities at February 28, 2013 and February 29, 2012, respectively, are as follows:


                 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

Deferred compensation cost

 

 

(62,424

) 

 

$

-

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

(141,576

)

 

 

(121,363

) 

Deferred tax liabilities

 

$

(204,000

)

 

$

(121,363

)