7. INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2013

Income Taxes Tables

Schedule of income taxes

	2013			2012
Current
Federal	$	(60,108	)	$	1,145,145
State and local		181,341			134,736
		121,233			1,279,881
Deferred
Federal		(516,000	)		211,000
State and local		1,000			(20,500	)
		(515,000	)		190,500
Income tax (benefit) expense	$	(393,767	)	$	1,470,381

Schedule of income tax reconciliation

	2013			2012
Tax at the federal statutory rate of 34%	$	(585,362	)	$	1,378,625
Non controlling interest		(51,800	)		(33,600	)
Amortization		(14,903	)		(14,900	)
Section 199		(20,400	)		(23,100	)
Accrual adjustments		(60,108	)		50,430
Other permanent differences		219,121			24,000
State and local tax, net of federal		119,685			88,926
Provision for income taxes	$	(393,767	)	$	1,470,381
Effective income tax rate		(23	)%		36	%

Schedule of tax effects of temporary differences

	2013		2012
Current deferred tax assets:
Accounts receivable	$	54,553	$	77,543
Net operating loss		866,000		-
Unrealized loss		372,791		580,390
Inventory		37,322		44,722
Total current deferred tax asset	$	1,330,666	$	702,655
Non-current deferred tax assets:
Deferred rent		74,044		60,484
Deferred compensation		195,290		191,861
Total non-current deferred tax asset	$	269,334	$	252,345
Total deferred tax asset	$	1,600,000	$	955,000
Non-current deferred tax liability:
Fixed assets		415,000		285,000
Total deferred tax liabilities	$	415,000	$	285,000