Note 13. Income Taxes

The components of the income tax provision for the years ended December 31, 2015 and 2014 are as follows:



	2015		2014

Current:
Federal	$	633	$	540
State		1		1
Deferred:
Federal		(101)		(60)
State		(3)		(21)
Total Federal and State Income Taxes	$	530	$	460

The provision for income taxes for the years ended December 31, 2015 and 2014 differs from the amount obtained by applying the U.S. federal income tax rate to pretax income due to the following:



	2015		2014

Computed “Expected” Federal Tax Expense	$	601	$	529
Increase (Decrease) in Taxes Resulting From:
State Income Taxes, net of Federal Benefit		10		10
Credits		(43)		(47)
Domestic Production Activities Deduction		(22)		(17)
Permanent Differences		5		4
Other		(21)		(19)
Total Federal and State Income Taxes	$	530	$	460

The components of the net deferred tax asset (liability) consist of:



	2015		2014

Deferred Tax Assets:
Vacation Accrual	$	34	$	33
Allowance for Doubtful Accounts		3		4
Stock Compensation		102		80
Bonus		10		0
Depreciation and Amortization		1		0
Net Unrealized Loss on Investments		21		0
State Carryforward R&D Credit		46		31
Total Deferred Tax Assets	$	217	$	148

Deferred Tax Liabilities:
Prepaid Expenses	$	33	$	35
Depreciation and Amortization		0		54
Net Unrealized Gain on Investments		0		450
Total Deferred Tax Liabilities	$	33	$	539

Net Deferred Tax Asset (Liability)	$	184	$	(391)

Deferred assets and liabilities are reported on the balance sheet as follows:


	2015		2014

Deferred Tax Assets:
Current	$	14		0
Long-term		170		0
Total Deferred Tax Assets	$	184	$	0

Deferred Tax Liabilities:
Long-term	$	0	$	391

The Company is subject to the following material taxing jurisdictions: U.S. and Minnesota. The tax years that remain open to examination by the Internal Revenue Service and state jurisdictions are 2012 through 2015. We have no accrued interest or penalties related to uncertain tax positions as of January 1, 2015 or December 31, 2015 and uncertain tax positions are not significant.