Income Taxes

12 Months Ended

Apr. 30, 2017

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Reconciliation of income taxes with Federal and State taxable income:

	2017			2016
Income before income taxes	$	3,528,000		$	4,317,000
State income tax deduction		(205,000	)		(236,000	)
Interest and dividend income		(565,000	)		(638,000	)
Domestic production activities deduction		(270,000	)		(312,000	)
Nondeductible expenses and timing differences		241,000			18,000
Taxable income	$	2,729,000		$	3,149,000

The following schedule reconciles the provision for income taxes to the amount computed by applying the statutory rate to income before income taxes:

	2017			2016
Income tax provision at statutory rate	$	1,475,000		$	1,805,000
Increase (decrease) income taxes resulting from:
State income taxes		(86,000	)		(99,000	)
Interest and dividend income		(236,000	)		(267,000	)
Domestic production activities		(113,000	)		(130,000	)
Deferred taxes		(13,000	)		(21,000	)
Other temporary and permanent differences		100,000			(57,000	)
Income tax expense	$	1,127,000		$	1,231,000
Federal tax rate		34.0	%		34.0	%
State tax rate		7.8	%		7.8	%
Blended statutory rate		41.8	%		41.8	%

Deferred tax assets (liabilities) consist of the following components at April 30, 2017 and 2016:

	2017			2016
Deferred tax current assets (liabilities):
Inventory valuation		31,000			30,000
Allowance for doubtful accounts		1,000			—
263A adjustment		77,000			98,000
Accrued vacation		38,000			34,000
Accumulated unrealized (gain)/loss on investments		(890,000	)		(249,000	)
Net deferred tax assets (liabilities)	$	(743,000	)	$	(87,000	)
Deferred long-term tax assets (liabilities):
Depreciation		(163,000	)		(191,000	)
Net deferred long-term tax assets (liabilities)	$	(163,000	)	$	(191,000	)