INCOME TAXES

6 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 8 - INCOME TAXES

The provision for income taxes as of March 31, 2017 and 2016 is as follows:

	March 31, 2017		March 31, 2016
Income tax expense	$	192,000	$	78,600

The Company uses the asset-liability method of computing deferred taxes in accordance with FASB 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 nondeductible variable costs of shareholder usage.

As of March 31, 2017 and 2016, the Company’s deferred tax liability was $822,800 and $927,700, respectively. This liability is derived from temporary differences in the timing of recognition of certain expenses for tax and book purposes. The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations.