Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

8

–

Income Taxes

The Company’s deferred tax assets consisted of the following: 

	December 31,
Deferred tax assets:	2019			2018
Stock based compensation	$	44,000		$	50,000
Goodwill and intangibles		3,000			21,000
Property and equipment		471,000			486,000
Total deferred tax assets		518,000			557,000
Valuation Allowance		(42,000	)		(50,000	)
Deferred tax asset – net of valuation allowance	$	476,000		$	507,000
Change in valuation allowance	$	8,000		$	---

The provision for income taxes using the statutory federal tax rate as compared to the Company's effective tax rate is summarized as follows:	December 31,
	2019			2018
Tax expense at statutory rate		21.0	%		21.0	%
State and local income taxes, net of federal		16.4	%		17.7	%
Effective income tax expense rate		37.4	%		38.7	%

On

December 22, 2017,

the

2017

Tax Cut and Jobs Act (the “Tax Act”) was enacted into law and the new legislation contains several key tax provisions, including a reduction of the corporate income tax rate to

21%

effective

January 1, 2018,

among others. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the estimated transition tax, re-measuring our U.S. deferred tax assets and liabilities at a

21%

rate as well as reassessing the net realizability of our deferred tax assets and liabilities.