Note 7 - Income Taxes

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7

.   INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31
	20 20			2019
Federal
Current	$	(408,360	)	$	1,738,512
Deferred		(971,540	)		(312,658	)
		(1,379,900	)		1,425,854
State
Current		3,468			312,429
Deferred		(212,560	)		(14,262	)
		(209,092	)		298,167
Total	$	(1,588,992	)	$	1,724,021

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

	Year Ended March 31
	20 20			2019
Income tax expense (benefit) at U.S. federal statutory rate		(21.0	%)		21.0	%
Current year state and local income taxes net of federal income tax benefit		(2.4	)		3.5
Other		0.2			0.8
Provision for (benefit from) income taxes		(23.2	%)		25.3	%

The Company’s tax returns

may

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

March 

31,

2017

through

March 

31,

2019.

State and local returns

may

be subject to examination for fiscal years ended

March 

31,

2016

through

March 

31,

2019.

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
	20 20			2019
Deferred tax liabilities:
Depreciation	$	(128,868	)	$	(954,569	)
LIFO to average cost Section 481(a) adjustment		(602,220	)		(903,330	)
Total deferred tax liabilities		(731,088	)		(1,857,899	)
Deferred tax assets:
Inventory capitalization		85,137			106,856
Postretirement benefits other than pensions		24,127			50,798
Net operating loss carryforward - State		15,012			—
Restricted stock award compensation		200,949			120,510
Other		44,717			34,489
Total deferred tax assets		369,942			312,653
Net deferred tax asset (liability)	$	(361,146	)	$	(1,545,246	)