Income Taxes

3 Months Ended

Feb. 28, 2025

Income Taxes [Abstract]

INCOME TAXES

NOTE H – 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,
	2025		2024
Deferred Tax Assets
Depreciation	$	43,804	$	43,847
Allowance for bad debts		17,685		17,493
Inventory		84,450		84,450
Facilities rental		40,177		39,668
Other		94,259		75,398
Total deferred tax assets		280,375		260,856
Valuation allowance		-		-
Deferred Tax Assets	$	280,375	$	260,856

A 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, 2025			February 29, 2024
Current:
Federal	$	66,822		$	6,544
States		17,763			24,013
		84,585			30,557
Deferred:
Federal		(15,420	)		(13,425	)
States		(4,099	)		(5,221	)
		(19,519	)		(18,646	)
Provision for income taxes	$	65,066		$	11,911

The Company files a consolidated income tax return with its wholly-owned subsidiaries. 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 29,
	2025			2024
U.S Federal Income tax statutory rate		21	%		(21	)%
State income taxes		5	%		(5	)%
Other-primarily state franchise taxes		27	%		46	%
Effective tax rate		53	%		20	%