INCOME TAXES

12 Months Ended

Feb. 28, 2021

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5.        INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  The tax effects of significant items comprising our net deferred tax assets and liabilities are as follows:

	February 28 (29),
	2021			2020
Deferred tax assets:
Allowance for doubtful accounts	$	89,600		$	64,100
Inventory overhead capitalization		127,700			69,200
Inventory valuation allowance		138,700			70,100
Inventory valuation allowance – noncurrent		56,400			56,700
Allowance for sales returns		27,200			27,200
Accruals		754,200			363,900
Total deferred tax assets		1,193,800			651,200
Deferred tax liabilities:
Property, plant and equipment		(1,283,700	)		(1,644,500	)
Total deferred tax liabilities		(1,283,700	)		(1,644,500	)
Net deferred income tax liabilities	$	(89,900	)	$	(993,300	)

The components of income tax expense are as follows:

	February 28 (29),
	2021		2020
Current:
Federal	$	3,236,400	$	1,518,600
State		901,600		467,500
		4,138,000		1,986,100
Deferred:
Federal		382,100		109,300
State		86,700		11,400
		468,800		120,700
Total income tax expense	$	4,606,800	$	2,106,800

The following reconciles our expected income tax rate to the U.S. federal statutory income tax rate:

	February 28 (29),
	2021			2020
U.S. federal statutory income tax rate		21.0	%		21.0	%
U.S. state and local income taxes–net of federal benefit		5.5	%		5.9	%
Other		0.2	%		0.3	%
Total income tax expense		26.7	%		27.2	%

We file our tax returns in the U.S. and certain state jurisdictions in which we have nexus. We are no longer subject to income tax examinations by tax authorities for fiscal years before 2017.

Based upon a review of our income tax filing positions, we believe that our positions would be sustained upon an audit and do not anticipate any adjustments that would result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded. We classify interest and penalties associated with income taxes as a component of income tax expense on the statements of earnings.