5. INCOME TAXES

Components of tax expense (benefit) are as follows:


	Year Ended March 31
	2015			2014
Federal
Current	$	519,271		$	863,049
Deferred		(377,356	)		(172,281	)

		141,915			690,768
State
Current		161,571			133,014

		161,571			133,014

Total	$	303,486		$	823,782

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


	Year Ended March 31
	2015			2014
Income tax expense at U.S. federal statutory rate		34.0	%		34.0	%
Benefit of tax deduction allowed to manufacturing companies		(7.0	)		(3.0	)
Other		(1.0	)		—
Current year state and local income taxes net of federal income tax benefit		7.3			1.5
True up during the current year of income taxes on prior year filing		11.0			—

Provision for income taxes		44.3	%		32.5	%

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March 31, 2012 through March 31, 2014. State and local returns may be subject to examination for fiscal years ended March 31, 2012 through March 31, 2014.

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
	2015			2014
Deferred tax liabilities:
Depreciation	$	(1,231,047	)	$	(1,555,000	)

Total deferred tax liabilities		(1,231,047	)		(1,555,000	)
Deferred tax assets:
Inventory capitalization		201,094			170,000
LIFO Inventory		783,645			785,000
Postretirement benefits other than pensions		370,562			344,000
Other		63,104			66,002

Total deferred tax assets		1,418,405			1,365,002

Net deferred tax asset (liability)	$	187,358		$	(189,998	)