5. INCOME TAXES

Components of tax expense (benefit) are as follows:


	Year Ended March 31
	2014			2013
Federal
Current	$	863,049		$	2,840,388
Deferred		(172,281	)		(83,720	)

		690,768			2,756,668
State
Current		133,014			252,797

		133,014			252,797

Total	$	823,782		$	3,009,465

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:


	Year Ended March 31
	2014			2013
Income Tax Expense at U.S. federal statutory rate		34.0	%		34.0	%
Benefit of tax deduction allowed to manufacturing companies		(3.0	)		(3.0	)
State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing		1.5			1.9

Provision for income taxes		32.5	%		32.9	%

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March 31, 2011 through March 31, 2013. State and local returns may be subject to examination for fiscal years ended March 31, 2011 through March 31, 2013.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:


	March 31
	2014			2013
Deferred tax liabilities:
Depreciation	$	(1,500,000	)	$	(1,700,000	)

Total deferred tax liabilities		(1,500,000	)		(1,700,000	)
Deferred tax assets:
Inventory capitalization		170,000			170,000
LIFO Inventory		700,000			785,000
Postretirement benefits other than pensions		375,000			316,000
Other		65,002			66,721

Total deferred tax assets		1,310,002			1,337,721

Net deferred tax liability	$	(189,998	)	$	(362,279	)