Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Income tax expense (benefits)

Income tax expense (benefit) consists of the following components:

	2016		2015
Current tax	$	209,576	$	747,714
Deferred tax		456,605		(1,680,429	)
Income tax expense (benefit)	$	666,181	$	(932,715	)

Income tax expense (benefit) reconciliation

The expense for income differed from the amounts computed by applying the applicable United States statutory rate of 35% before income taxes as a result of the following differences:

	2016			2015
Tax computed at statutory rate	$	742,863		$	95,663
Changes in taxes due to:
Non-controlling interest		(100,891	)		(101,297	)
Current period loss for which no tax benefit was recognized		0			17,693
Small company deduction		(260,660	)		(552,694	)
Dividend received deduction		(92,731	)		(100,349	)
Other		377,600			(291,731	)
Income tax expense (benefit)	$	666,181		$	(932,715	)

Major components that comprise the deferred tax liability

The following table summarizes the major components that comprise the deferred tax liability as reflected in the balance sheets:

	2016			2015
Investments	$	9,690,287		$	(2,735,072	)
Cost of insurance acquired		2,543,589			2,849,133
Management/consulting fees		(52,797	)		(55,125	)
Future policy benefits		1,404,177			1,546,770
Deferred gain on sale of subsidiary		2,312,483			2,312,483
Other assets (liabilities)		13,245			27,406
Federal tax DAC		(451,935	)		(540,128	)
Deferred tax liability	$	15,459,049		$	3,405,467