NOTE 8 - INCOME TAXES

The provision for income taxes is as follows:

December 31,

2016

December 31,

2015

Income tax provision

112,400

79,400

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, state taxes net of federal tax benefit, and non-deductible variable cost of shareholder usage.

We have early adopted Accounting Standards Update (ASU) 2015-17, Balance Sheet Classification of Deferred Taxes, to simplify and improve the usefulness of the financial statements. The amendments in the ASU require that deferred tax liabilities and assets be classified as noncurrent in the classified statement of financial position.

This ASU is effective for financial statements issued for annual periods beginning after December 15, 2018. Earlier application is permitted as of the beginning of an interim or annual reporting period. We have made this classification update as of October 1, 2016, and have applied this change retrospectively to all periods presented. Below is a table summarizing the changes in presentation for the periods ending September 30, 2016 and December 31, 2015:


	September 30,		December 31,
	2016		2015
Total Assets – original presentation	$	17,969,672	$	17,465,221
Total liabilities – original presentation		4,416,733		4,519,183

Total assets – change in presentation		(108,000)		(102,700)
Total liabilities – change in presentation		(108,000)		(102,700)

Total assets – updated presentation		17,861,672		17,362,521
Total liabilities – updated presentation		4,308,733		4,416,483