INCOME TAXES

3 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 7 – INCOME TAXES

The provision for income taxes for the three months ended December 31, 2019 and 2018 is as follows:

	Three Months Ended December 31,
	2019		2018
Income tax expense	$	51,400	$	60,000

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 state taxes net of the federal tax benefit and nondeductible variable costs of shareholder usage.

As of December 31, 2019, September 30, 2019, and December 31, 2018, the Company’s deferred tax liability was $437,700, $444,800, and $505,600, respectively.  Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future.  The majority of the balance is due to timing differences of depreciation expense, caused by the use of accelerated depreciation methods for tax calculations.