Income Taxes

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 7:  Income Taxes

The provisions for income taxes for the years ended September 30, 2022 and 2021 are as follows:

	2022		2021
Current:
Federal	$	524,500	$	661,700
State		218,500		375,400
		743,000		1,037,100
Deferred:
Federal		(12,900)		24,400
State		(5,400)		(4,300)
		(18,300)		20,100
Provision for income taxes	$	724,700	$	1,057,200

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

At September 30, 2022 and 2021, the deferred income tax liabilities consisted of the following:

	2022		2021
Deferred tax assets (liabilities):
Federal	$	(377,800)	$	(390,800)
State		(47,100)		(52,500)
Net deferred income taxes	$	(424,900)	$	(443,300)

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.

At September 30, 2022 and 2021, the deferred income tax liabilities consisted of the following temporary differences:

	2022		2021
Depreciation	$	(525,400)	$	(552,900)
Total gross deferred tax liabilities		(525,400)		(552,900)
Vacation accrual		34,400		30,100
Federal benefit of state taxes		66,100		79,500
Total gross deferred tax assets		100,500		109,600
	$	(424,900)	$	(443,300)

There were no net operating loss or tax credit carryforwards for the year ended September 30, 2022 or 2021 for federal or state.