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, 2018
Income Tax Disclosure [Abstract]  
Schedule of provision (benefit) for income taxes

The provision (benefit) for income taxes at December 31, 2018, and December 31, 2017 consisted of:

 

    December 31,
2018
  December 31,
2017
 
State income tax:          
Current, net of refund   $ 12,391   $ 1,670  
Federal income tax:              
Deferred     23,141     (47,327 )
Current     230,848     448,220  
Total   $ 266,380   $ 402,563  
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 fiscal year 2018 and 34% for fiscal year 2017 is as follows:

 

    December 31,
2018
  December 31,
2017
 
           
Income before tax   $ 1,176,950   $ 1,307,520  
Computed expected tax   $ 247,160   $ 444,557  
State income and franchise tax     12,391     1,670  
Reduction in deferred tax from change in tax rate         (13,420 )
Other     6,829     (30,244 )
Provision for taxes   $ 266,380   $ 402,563  
Schedule of component of deferred tax liabilities

The components of deferred tax assets/(liabilities) at December 31, 2018, and December 31, 2017, respectively, are as follows:

 

    December 31,
2018
  December 31,
2017
 
           
Deferred compensation cost   $ 79,632   $ 33,987  
Depreciation and amortization     (79,640 )   (69,550 )
Allowance for bad debts and other     1,474     13,888  
Deferred tax asset/(liabilities)   $ 1,466   $ (21,675 )