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2. Basis of Presentation and Significant Accounting Policies: Income Taxes (Policies)
6 Months Ended
Apr. 30, 2017
Policies  
Income Taxes

Income Taxes

 

The Company calculates its income tax provision during interim reporting periods by applying an estimate of its annual effective tax rate to year-to-date pre-tax income or loss. The Company’s provision for income taxes consists of federal and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date income tax provision with the annual effective tax rate that it expects to achieve for the full year.  

 

The Company’s projected annual effective tax rate of 75.5% (excluding discrete items) is higher than the federal statutory rate of 34% primarily related to Incentive Stock Options and state and local income taxes.  For the three and six months ended April 30, 2017, the Company recorded an income tax benefit of approximately 192325$192,000 and 97641$98,000, respectively, which included a discrete tax provision of approximately $198,000 related to the Company adjusting its deferred tax asset relating to net operating losses in various state jurisdictions.