INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAXES

Schedule of components of income tax expense

	2013		2012
Current:
Federal	$	91,000	$	319,000
State	1,000		2,000
	92,000		321,000
Deferred	153,000		30,000
	$	245,000	$	351,000

Schedule of expected provision for income taxes, computed by applying the U.S. federal income tax rate to income before taxes, reconciled to income tax expense

	2013			2012
Expected provision for federal income taxes	$	315,000		$	365,700
State income taxes, net of federal benefit	16,000			(400		)
Domestic manufacturers deduction	(20,000		)	(31,800		)
Non-deductible meals, entertainment, and life insurance	13,000			20,800
Prior year adjustments	(32,000		)	—
Research and development credit	(45,000		)	—
Other	(2,000		)	(3,300		)
	$	245,000		$	351,000

Schedule of components of net deferred tax liabilities

	2013			2012
Deferred tax assets:
Accrued vacation	$	23,000		$	25,000
Inventories reserve	105,000			101,000
Allowance for doubtful accounts	9,000			5,000
Allowance for sales returns	13,000			11,000
Capital loss carryforward	309,000			323,000
Research and development credit carryforward	17,000			—
Less valuation allowance	(326,000		)	(323,000		)
	150,000			142,000
Deferred tax liabilities:
Property and equipment and other assets	(468,000		)	(324,000		)
Intangible assets	(59,000		)	(42,000		)
Net deferred tax liabilities	$	(377,000	)	$	(224,000	)

Schedule of deferred tax amounts included in the accompanying balance sheet

	2013			2012
Current assets	$	150,000		$	142,000
Noncurrent liabilities	(527,000		)	(366,000		)
	$	(377,000	)	$	(224,000	)