Annual report pursuant to Section 13 and 15(d)

FEDERAL AND STATE INCOME TAXES (Tables)

v2.4.0.6
FEDERAL AND STATE INCOME TAXES (Tables)
12 Months Ended
Feb. 28, 2013
FEDERAL AND STATE INCOME TAXES [Abstract]  
Schedule of Income Tax Provision

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

 


Schedule of Income Tax Reconciliation

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

 


Schedule of Deferred Tax Assets (Liabilities)

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

)