Note 5 - Income Taxes

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

5.

   INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31
	201 7			2016
Federal
Current	$	(714,684	)	$	274,947
Deferred		(644,865	)		(221,144	)
		(1,359,549	)		53,803
State
Current		—			50,878
Deferred		(112,583	)		—
		(112,583	)		50,878
Total	$	(1,472,132	)	$	104,681

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

	Year Ended March 31
	2017			2016
Income tax expense (benefit) at U.S. federal statutory rate		(34.0%	)		34.0	%
Benefit of tax deduction allowed to manufacturing companies		—			(6.6	)
Current year state and local income taxes net of federal income tax benefit		(1.7	)		8.4
Other		0.2			(9.5	)
Provision for (benefit from) income taxes		(35.5%	)		26.3	%

The Company’s tax returns

may

be subject to examination by the Internal Revenue Service for the fiscal years ended

March 

31,

2014

through

March 

31,

2016.

State and local returns

may

be subject to examination for fiscal years ended

March 

31,

2013

through

March 

31,

2016.

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
	201 7			2016
Deferred tax liabilities:
Depreciation	$	(507,970	)	$	(871,665	)
Total deferred tax liabilities		(507,970	)		(871,665	)
Deferred tax assets:
Inventory capitalization		166,979			179,956
LIFO Inventory		783,645			783,645
Postretirement benefits other than pensions		187,096			267,104
Net operating loss carryforward - Federal		343,729			—
Net operating loss carryforward - State		112,583			—
Other		79,888			49,462
Total deferred tax assets		1,673,920			1,280,167
Net deferred tax asset	$	1,165,950		$	408,502