12. INCOME TAXES

The differences between the financial statement basis and tax basis of assets are based on the following:


	October 31, 2016		October 31, 2015
Financial statement basis of assets	$	121,470,922	$	122,011,081
Organization & start-up costs capitalized for tax purposes, net		357,554		446,943
Tax depreciation greater than book depreciation		(17,884,622)		(19,655,009)
Unrealized derivatives (gains) losses		(566,588)		1,114
Capitalized inventory		41,467		30,294
Net effect of consolidation of acquired subsidiary		(36,496,913)		(26,322,082)
Income tax basis of assets	$	66,921,820	$	76,512,341

There were no significant differences between the consolidated financial statement basis of liabilities and the income tax basis of liabilities at October 31, 2016 and 2015.