(10) DEFERRED INCOME TAXES

12 Months Ended

Dec. 31, 2011

Deferred Income Taxes [Text Block]

(10) DEFERRED INCOME TAXES

Deferred income taxes result from differences in the recognition of gains and losses on marketable securities, stock options and mark-to-market short positions as well as depreciation differences for tax and financial statement purposes.

The deferred tax expense or benefit that results from the net change in the unrealized gains on the marketable securities does not flow through the Statement of Operations due to the classification of the marketable securities as available-for-sale. Instead, the deferred tax expense or benefit is recorded in Accumulated Other Comprehensive Income in the Stockholders’ Equity section of the Balance Sheet.

The deferred tax liability, computed at federal statutory rates of 35% in 2011 and 2010, is composed of the following items:

	2011			2010
Deferred Tax Liabilities (Assets):
Fair value adjustment for available-for-sale securities	$	6,769,255		$	8,017,839
Mark to market short positions		(2,254,005	)		856,641
Property and Equipment		147,938			168,941
Allowance for doubtful accounts		(51,202	)		(39,475)
Other		(47,932	)		-
	$	4,564,054		$	9,003,946