Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES (Tables)

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FEDERAL AND STATE INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes

The provision for income taxes as of December 31, 2019, and 2018 consisted of: 

 

    December 31,
2019
  December 31,
2018
 
State income tax:          
Current, net of refund   $ 22,514   $ 12,391  
Federal income tax:              
Deferred     (186,775   23,141  
Current     296,330     230,848  
Total   $ 132,069   $ 266,380  
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 21% for year 2019 and 2018 is as follows:

 

    December 31,
2019
  December 31,
2018
 
           
Income before tax   $ 696,418   $ 1,176,950  
Computed expected tax   $ 146,248   $ 247,160  
State income and franchise tax     22,514     12,391  
Other     (36,693 )   6,829  
Provision for taxes   $ 132,069   $ 266,380  
Schedule of components of deferred tax assets

The components of deferred tax assets at December 31, 2019, and 2018, respectively, are as follows: 

 

    December 31,
2019
  December 31,
2018
 
           
Deferred compensation cost   $ 259,068   $ 79,632  
Depreciation and amortization     (71,331 )   (79,640 )
Allowance for bad debts and other     504     1,474  
Deferred tax asset   $ 188,241   $ 1,466