Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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

	2020			2019
Current tax	$	2,476,599		$	1,698,995
Deferred tax		(2,136,105	)		1,892,306
Income tax expense	$	340,494		$	3,591,301

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% as of December 31, 2020 and 2019, before income taxes as a result of the following differences:

	2020			2019
Tax computed at statutory rate	$	536,982		$	4,239,316
Changes in taxes due to:
Non-controlling interest		(26,871	)		(68,280	)
Dividend received deduction		(155,597	)		(175,866	)
Other		(14,020	)		(403,869	)
Income tax expense	$	340,494		$	3,591,301

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:

	2020			2019
Investments	$	10,918,449		$	10,983,955
Cost of insurance acquired		861,309			1,017,727
Management/consulting fees		(8,832	)		(9,147	)
Future policy benefits		(511,297	)		(460,923	)
Deferred gain on sale of subsidiary		1,387,490			1,387,490
Other assets (liabilities)		364,797			197,876
Reserves adjustment		240,266			288,320
Federal tax DAC		(256,468	)		(182,694	)
Deferred tax liability	$	12,995,714		$	13,222,604