INCOME TAXES (Tables)

12 Months Ended

Jul. 31, 2014

Schedule of deferred tax assets and liabilities

Significant components of the Company's deferred tax assets and liabilities as of July 31, 2014 and 2013 are a result of temporary differences related to the items described as follows:

	2014				2013
	Deferred		Deferred		Deferred		Deferred
	Tax Assets		Tax Liabilities		Tax Assets		Tax Liabilities
Rental income received in advance	$	199,413	$	-	$	222,408	$	-
Unbilled receivables		-		1,149,512		-		976,652
Property and equipment		-		2,964,078		-		2,557,262
Deferred revenue		946,033		-		-		-
Unrealized gain on marketable securities		-		106,291		-		150,001
Other		418,376		-		453,536		-
	$	1,563,822	$	4,219,881	$	675,944	$	3,683,915

Schedule of income tax expense

Income taxes provided for the years ended July 31, 2014, 2013 and 2012 consist of the following:

	2014			2013		2012
Current:
Federal	$	501,667		$	30,642	$	362,463
State and City		348,333			202,358		291,537
Deferred taxes:
Federal		(187,000	)		267,000		408,000
State and City		(122,000	)		18,000		469,000
Total provision	$	541,000		$	518,000	$	1,531,000

Components of deferred tax provision (benefit)

Components of the deferred tax provision (benefit) for the years ended July 31, 2014, 2013 and 2012 consist of the following:

	2014			2013			2012
Tax depreciation exceeding book depreciation	$	406,019		$	380,598		$	695,771
Decrease (increase) of rental income
received in advance		22,995			(39,528	)		(106,944	)
Increase (decrease) in unbilled receivables		172,860			(19,005	)		449,617
Deferred revenue		(946,033	)		-			-
Other		35,159			(37,065	)		(161,444	)
	$	(309,000	)	$	285,000		$	877,000

Schedule of effective income tax rate reconciliation

Taxes provided for the years ended July 31, 2014, 2013 and 2012 differ from amounts which would result from applying the federal statutory tax rate to pre-tax income, as follows:

	2014			2013			2012
Income before income taxes	$	1,280,323		$	1,181,671		$	2,801,353
Dividends received deduction		(8,205	)		(12,590	)		(7,992	)
Other-net		10,124			10,567			8,023
Adjusted pre-tax income	$	1,282,242		$	1,179,648		$	2,801,384
Statutory rate		34	%		34	%		34	%
Income tax provision at statutory rate	$	433,100		$	366,444		$	869,586
State and City income taxes, net of federal income tax benefit		229,900			133,556			192,414
State and City deferred income taxes		(122,000	)		18,000			469,000
Income tax provision	$	541,000		$	518,000		$	1,531,000