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(8) INCOME TAXES
9 Months Ended
Sep. 30, 2011
Income Tax Disclosure [Text Block]
(8) INCOME TAXES

The Company accrues income taxes in interim periods based upon its estimated annual effective tax rate.

The current income tax (benefit) expense for the three months ended September 30, 2011 and 2010 (unaudited) is comprised of the following:

  
 
September 30,
   
September 30,
 
   
2011
   
2010
 
Regular tax and Alternative Minimum Tax (AMT)
 
$
(486,127
)   
$
707,389
 
Personal Holding Company Tax (PHC)
   
(60,000
)     
80,943
 
State Franchise Taxes
   
(12,240
)     
75,403
 
Total Current Income Tax (Benefit) Provision
   
(558,367
)     
863,735
 
Deferred Income Taxes
   
(2,286,769
) 
   
935,377
 
Total Income Tax (Benefit) Expense
 
$
(2,845,136
) 
 
$
1,799,112
 

  The current income tax (benefit) expense for the nine months ended September 30, 2011 and 2010 (unaudited) is comprised of the following:

  
 
September 30,
   
September 30,
 
   
2011
   
2010
 
Regular tax and Alternative Minimum Tax (AMT)
 
$
375,003
   
$
2,643,679
 
Personal Holding Company Tax (PHC)
   
80,000
     
870,496
 
State Franchise Taxes
   
109,612
     
111,403
 
Total Current Income Tax Provision
   
564,615
     
3,625,578
 
Deferred Income Taxes
   
(4,652,095
) 
   
(1,282,320
) 
Total Income Tax (Benefit) Expense
 
$
(4,087,480
) 
 
$
2,343,258
 

The deferred income tax liability is computed at the federal statutory rate of 35% and comprised of the following:

   
(unaudited)
September 30,
2011
   
December 31,
2010
 
             
Deferred Tax Liabilities:
           
             
Fair value adjustment for available-for-sale securities
 
$
6,424,254
   
$
8,017,839
 
Mark to market short positions
   
(3,761,831
) 
   
856,641
 
Property and equipment
   
94,803
     
168,941
 
Other
   
—
     
(39,475
) 
                 
   
$
2,757,226
   
$
9,003,946
 

The deferred tax liability that results from the marketable securities does not flow through the statement of operations due to the classification of the marketable securities as available-for-sale. Instead, any increase or decrease in the deferred tax liability is recorded as an adjustment to the accumulated other comprehensive income account which is in the stockholders’ equity section of the balance sheet.