Income Taxes

9 Months Ended

Jun. 30, 2011

Income Taxes

Income Tax Disclosure [Text Block]

Note 6 - Income Taxes

The provision for income taxes for the nine-month period is as follows:

	June 30, 2011	June 30, 2010
Income tax expense	$167,200	$188,000

The difference between the effective tax rate and the statutory tax rates is due primarily to the effects of graduated tax rates, state taxes net of federal benefit, nondeductible variable costs of shareholder usage and other adjustments.

Under Income Taxes Topic of FASB Accounting Standards Codification (ASC), income taxes are provided for the tax effect of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. The deferred tax assets and liabilities represent the future tax consequences of differences between financial and income tax reporting, which will either be taxable or deductible when the assets and liabilities are recovered or settled.

ASC also requires, among other things, the recognition and measurement of uncertain tax positions based on a "more likely than not" (likelihood greater than 50%) approach. As of June 30, 2011, the Company did not maintain any uncertain tax positions under this approach and, accordingly, all tax positions have been fully recorded in the provision for income taxes. It is the policy of the Company to consistently classify interest and penalties associated with income tax expense separately from the provision for income taxes. No interest or penalties associated with income taxes have been included in this calculation, or separately in the Statement of Operations and Retained Earnings, and no significant increases or decreases are expected within the following twelve-month period. Although the Company does not maintain any uncertain tax positions, tax returns remain subject to examination by the Internal Revenue Service for fiscal years ending on or after September 30, 2008 and by the California Franchise Tax Board for fiscal years ending on or after September 30, 2007.