Income Tax Provision

6 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

5.   Income Tax Provision

The Company recognized an income tax provision of $183,900 for the six months ended June 30, 2012 compared to an income tax provision of $166,700 for the same period in 2011.

Income tax provision for the six months ended June 30, 2012 was calculated as follows:

	Federal		State		Total
Current tax provision	$	71,000	$	12,000	$	83,000
Deferred tax provision		78,500		22,400		100,900
	$	149,500	$	34,400	$	183,900

Income tax provision for the six months June 30, 2011 was calculated as follows:

	Federal		State		Total
Current tax provision	$	94,800	$	15,800	$	110,600
Deferred tax provision		43,800		12,300		56,100
	$	138,600	$	28,100	$	166,700

Income tax provision for the three months ended June 30, 2012 was calculated as follows:

	Federal		State		Total
Current tax provision	$	29,500	$	5,100	$	34,600
Deferred tax provision		42,350		12,150		54,500
	$	71,850	$	17,250	$	89,100

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

	Federal		State		Total
Current tax provision	$	54,500	$	9,900	$	64,400
Deferred tax provision		26,100		7,300		33,400
	$	80,600	$	17,200	$	97,800

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 $1,719,000 as of June 30, 2012. 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.