7. INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2015

Income Taxes Tables

Schedule of income taxes

	2015			2014
Current
Federal	$	(73,407	)	$	1,607,952
State and local		36,610			332,199
		(36,797	)		1,940,151
Deferred
Federal		(657,500	)		886,060
State and local		(69,350	)		120,891
		(726,850	)		1,006,951
Income tax (benefit) expense	$	(763,647	)	$	2,947,102

Schedule of income tax reconciliation

	2015			2014
Tax at the federal statutory rate of 34%	$	(711,680	)	$	2,708,175
Other permanent differences		(30,359	)		(62,348	)
State and local tax, net of federal		(21,608	)		301,278
Provision for income taxes	$	(763,647	)	$	2,947,102
Effective income tax rate		(37)	%		37	%

Schedule of tax effects of temporary differences

	2015		2014
Current deferred tax assets:
Accounts receivable	$	53,605	$	54,407
Net operating loss		714,150		27,807
Unrealized loss		180,112		183,216
Inventory		49,853		78,227
Total current deferred tax asset	$	997,720	$	343,657
Non-current deferred tax assets:
Deferred rent		82,666		79,575
Deferred compensation		179,614		194,768
Total non-current deferred tax asset	$	262,280	$	274,343
Total deferred tax asset	$	1,260,000	$	618,000
Non-current deferred tax liability:
Fixed assets		354,650		439,500
Total deferred tax liabilities	$	354,650	$	439,500