Income Taxes

3 Months Ended

Feb. 28, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE I – INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates in effect in the years in which the differences are expected to reverse.

The Company’s deferred income taxes are comprised of the following:

	February 28,		November 30,
	2022		2021
Deferred Tax Assets
Net operating loss	$	12,514	$	176,445
Allowance for bad debts		31,896		31,896
Inventory		81,523		63,125
Deferred rent		21,524		17,374
Other		91,046		93,508
Depreciation		28,595		24,902
Total deferred tax assets		267,098		407,250
Valuation allowance		-		-
Deferred Tax Assets	$	267,098	$	407,250

The valuation allowance for the deferred tax assets relates principally to the uncertainty of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.

The Company’s income tax expense consists of the following:

	Three Months Ended
	February 28, 2022		February 28, 2021
Current:
Federal	$	71,425	$	-
States		57,339		35,975
		128,764		35,975
Deferred:
Federal		110,720		42,324
States		29,432		-
		140,152		42,324
Provision for income taxes	$	268,916	$	78,299

The Company files a consolidated income tax return with its wholly-owned subsidiaries and has net operating loss carryforwards of approximately $48,000 for federal and state purposes, which expire through 2025. A reconciliation of the difference between the expected income tax rate using the statutory federal tax rate and the Company’s effective rate is as follows:

	Three months ended
	February 28,			February 28,
	2022			2021
U.S Federal Income tax statutory rate		21	%		21	%
Valuation allowance		-	%		(4	)%
State income taxes		5	%		5	%
Other		3	%		-
Effective tax rate		29	%		22	%