Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Income tax expense (benefits)

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

	2019		2018
Current tax	$	1,698,995	$	1,922,542
Deferred tax		1,892,306		1,984,994
Income tax expense	$	3,591,301	$	3,907,536

Income tax expense (benefit) reconciliation

The expense for income taxes differed from the amounts computed by applying the applicable United States statutory rate of 21% and 21% as of December 31, 2019 and 2018, respectively, before income taxes as a result of the following differences:

	2019		2018
Tax computed at statutory rate	$	4,239,316	$	3,466,644
Changes in taxes due to:
Non-controlling interest		(68,280)		(43,927)
Dividend received deduction		(175,866)		(170,690)
Other		(403,869)		655,509
Income tax expense	$	3,591,301	$	3,907,536

Major components that comprise the deferred tax liability

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

	2019		2018
Investments	$	10,983,955	$	6,939,758
Cost of insurance acquired		1,017,727		1,180,668
Management/consulting fees		(9,147)		(15,724)
Future policy benefits		(460,923)		(1,670,814)
Deferred gain on sale of subsidiary		1,387,490		1,387,490
Other assets (liabilities)		197,876		65,573
Reserves adjustment		288,320		1,426,205
Federal tax DAC		(182,694)		(199,676)
Deferred tax liability	$	13,222,604	$	9,113,480