12. INCOME TAXES

The differences between the consolidated financial statement basis and tax basis of assets are estimated as follows:


	October 31, 2017		October 31, 2016
Consolidated financial statement basis of assets	$	127,089,530	$	121,470,922
Organization & start-up costs capitalized for tax purposes, net		268,166		357,554
Tax depreciation greater than book depreciation		(14,219,188)		(17,884,622)
Unrealized derivatives gains of commodity derivative instruments		(102,650)		(566,588)
Capitalized inventory		81,119		41,467
Net effect of consolidation of acquired subsidiary		(32,239,669)		(36,496,913)
Income tax basis of assets	$	80,877,308	$	66,921,820

There were no significant differences between the consolidated financial statement basis of liabilities and the income tax basis of liabilities at October 31, 2017 and 2016.