7. INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2012

Income Taxes Tables

Schedule of income taxes

	2012			2011
Current
Federal	$	1,145,145		$	1,036,645
State and local		134,736			15,377
		1,279,881			1,052,022
Deferred
Federal		211,000			(782,000	)
State and local		(20,500	)		(40,500	)
		190,500			(822,500	)
Income tax expense	$	1,470,381		$	229,522

Schedule of income tax reconciliation

	2012			2011
Tax at the federal statutory rate of 34%	$	1,378,625		$	365,672
Non controlling interest		(33,600	)		(11,600	)
Amortization		(14,900	)		(14,900	)
Section 199		(23,100	)		(40,000	)
Accrual adjustments		50,430			–
Other permanent differences		24,000			(25,600	)
State and local tax, net of federal		88,926			(44,050	)
Provision for income taxes	$	1,470,381		$	229,522
Effective income tax rate		36	%		21	%

Schedule of tax effects of temporary differences

	2012		2011
Current deferred tax assets:
Accounts receivable	$	77,543	$	91,400
Unrealized loss		580,390		758,000
Inventory		44,722		47,000
Total current deferred tax asset	$	702,655	$	896,400
Non-current deferred tax assets:
Deferred rent		60,484		50,600
Deferred compensation		191,861		190,500
Total non-current deferred tax asset	$	252,345	$	241,100
Total deferred tax asset	$	955,000	$	1,137,500
Non-current deferred tax liability:
Fixed assets		285,000		277,000
Total deferred tax liabilities	$	285,000	$	277,000