7. INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2014

Income Taxes Tables

Schedule of income taxes

	2014		2013
Current
Federal	$	1,607,952	$	(60,108	)
State and local		332,199		181,341
		1,940,151		121,233
Deferred
Federal		886,060		(516,000	)
State and local		120,891		1,000
		1,006,951		(515,000	)
Income tax (benefit) expense	$	2,947,102	$	(393,767	)

Schedule of income tax reconciliation

	2014			2013
Tax at the federal statutory rate of 34%	$	2,708,175		$	(585,362	)
Other permanent differences		(62,348	)		71,910
State and local tax, net of federal benefit		301,278			119,685
Provision for income taxes	$	2,947,102		$	(393,767	)
Effective income tax rate		37	%		(23	)%

Schedule of tax effects of temporary differences

	2014		2013
Current deferred tax assets:
Accounts receivable	$	54,407	$	54,553
Net operating loss		27,807		866,000
Unrealized loss		183,216		372,791
Inventory		78,227		37,322
Total current deferred tax asset	$	343,657	$	1,330,666
Non-current deferred tax assets:
Deferred rent		79,575		74,044
Deferred compensation		194,768		195,290
Total non-current deferred tax asset	$	274,343	$	269,334
Total deferred tax asset	$	618,000	$	1,600,000
Non-current deferred tax liability:
Fixed assets		439,500		415,000
Total deferred tax liabilities	$	439,500	$	415,000