Income Tax Provision

9 Months Ended

Sep. 30, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5.  Income Tax Provision

The Company recognized an income tax provision of $11,800 for the nine months ended September 30, 2011 compared to a net income tax benefit of $88,000 for the same period in 2010.

Income tax provision for the nine months ended September 30, 2011 was calculated as follows:

	Federal			State			Total
Current tax provision	$	140,000		$	23,300		$	163,300
Deferred tax provision		(117,800	)		(33,700	)		(151,500	)
	$	22,200		$	(10,400	)	$	11,800

Income tax provision (benefit) for the nine months September 30, 2010 was calculated as follows:

	Federal			State			Total
Current tax provision	$	78,000		$	14,100		$	92,100
Deferred tax (benefit)		(140,100	)		(40,000	)		(180,100	)
	$	(62,100	)	$	(25,900	)	$	(88,000	)

Income tax provision for the three months ended September 30, 2011 was calculated as follows:

	Federal			State			Total
Current tax provision	$	45,200		$	7,500		$	52,700
Deferred tax provision		(161,600	)		(46,000	)		(207,600	)
	$	(116,400	)	$	(38,500	)	$	(154,900	)

Income tax provision (benefit) for the three months ended September 30, 2010 was calculated as follows:

	Federal		State		Total
Current tax provision	$	40,150	$	7,050	$	47,200
Deferred tax (benefit)		58,800		16,500		75,300
	$	98,950	$	23,550	$	122,500

Deferred income taxes are recognized using the asset and liability method by applying income tax rates to cumulative temporary differences based on when and how they are expected to affect the tax returns.  Deferred tax assets and liabilities are adjusted for income tax rate changes.  Deferred income tax assets have been offset by a valuation allowance of $1,710,000 as of September 30, 2011.  Management reviews deferred income taxes regularly throughout the year, and accordingly makes any necessary adjustments to properly reflect the valuation allowance based upon current financial trends and projected results.