Note J - Income Taxes

9 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE J — INCOME TAXES

For the

nine

months ended

December 31, 2018,

the Company recorded an income tax provision of

$2,023,422,

or

24.4%

of pre-tax income, compared to

$889,855,

or

49.1%

of pre-tax income, for the

nine

months ended

December 31, 2017.

The provision for the

nine

months ended

December 31, 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

nine

months ended

December 31, 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

nine

months ended

December 31, 2017,

the Company’s effective tax rate differed from the corporate statutory rate due primarily to the re-measurement of deferred tax assets and liabilities according to the Tax Act.

Also on

December 22, 2017,

the Securities and Exchange Commission issued Staff Accounting Bulletin

No.

118

(“SAB

118”

) to address the application of U.S. GAAP in situations where a registrant does

not

have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. SAB

118

allowed companies to record provisional estimates during a measurement period

not

extending beyond

one

year from the Tax Act enactment date. As of

December 22, 2018,

the Company has completed the accounting for all impacts of the Tax Act and there have been

no

changes to previously recorded amounts.