Note J - Income Taxes

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE J — INCOME TAXES

For the

six

months ended

September 30, 2018,

the Company recorded an income tax provision of

$1,807,329,

or

24.4%

of pre-tax income, compared to

$329,888,

or

30.3%

of pre-tax income, for the

six

months ended

September 30, 2017.

The provision for the

six

months ended

September 30, 2017

has been adjusted by the retroactive application of the change in accounting principle disclosed in Note B.

On

December 22, 2017,

the U.S. government signed into law the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act, among other things, lowered the U.S. corporate income tax rate applicable to the Company from

34%

to

21%

effective

January 1, 2018.

For the

six

months ended

September 30, 2018,

the Company’s effective tax rate differed from the corporate statutory rate due primarily to the inclusion of state tax expenses in the Company’s income tax provision. For the

six

months ended

September 30, 2017,

the Company’s effective tax rate differed from the corporate statutory rate due primarily to tax benefits related to the ownership transfer of a life insurance policy from the Company to an officer upon retirement.

While the Company has substantially completed its analysis of the income tax effects of the Tax Act and recorded a reasonable provisional estimate of such effects, certain items related to the Tax Act

may

differ, possibly materially, due to further refinement of the calculations, changes in interpretations and assumptions made, additional guidance that

may

be issued by the U.S. government, and actions related to accounting policy decisions the Company

may

make as a result of the Tax Act. Pursuant to Staff Accounting Bulletin

118

(“SAB

118”

) issued by the Securities and Exchange Commission on

December 22, 2017,

the Company will complete its analysis of these items over a

one

-year measurement period ending

December 22, 2018

and any adjustments during this measurement period will be recorded as discrete adjustments to income tax expense in the period in which adjustments become estimable and/or are finalized.