INCOME TAXES

12 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Text Block]

NOTE 7 - INCOME TAXES

The provision for income taxes is as follows:

	2012	2011
Current:
Federal	$177,200	$176,900
State	94,500	91,400
Current Tax, Total	271,700	268,300
Deferred:
Federal	136,600	157,200
State	(3,800)	300
Income Tax Expense (Benefit)	404,500	$425,800

The deferred tax assets (liabilities) are comprised of the following:

	2012		2011
	Current	Long-term	Current	Long-term
Deferred tax assets:
Federal	$ 68,300	$ -	$ 68,400	$ -
State	5,300	-	5,200	-
Deferred tax liabilities
Federal	-	(744,500)	-	(608,000)
State	-	(52,300)	-	(56,000)
Total	$ 73,600	$(796,800)	$ 73,600	$(664,000)

The deferred tax assets (liabilities) consist of the following temporary differences:

	2012	2011
Depreciation	$(796,800)	$(664,000)
Total gross deferred tax liabilities	(796,800)	(664,000)
Vacation accrual	25,500	25,100
Federal benefit of state taxes	48,100	48,500
Total gross deferred tax assets	73,600	73,600
Total	$(723,200)	$(590,400)

The effective income tax rate varies from the statutory federal income tax rate as follows:

	2012	2011
Statutory federal income tax rate	34.0%	34.0%
Increase (decrease):
State income taxes, net of federal benefit	5.8	5.8
Nondeductible variable costs of shareholder usage	6.5	6.0
Other miscellaneous adjustments	(0.1)	0.2
Effective Income Tax Rate	46.2%	46.0%

The Company uses the asset-liability method of computing deferred taxes in accordance with FASB Accounting Standards Codification (ASC) Topic 740. The difference between the effective tax rate and the statutory tax rates is due primarily to the effects of the graduated tax rates, states net of federal tax benefit and nondeductible variable costs of shareholder usage.