INCOME TAXES

12 Months Ended

Aug. 31, 2024

Income taxes (note 6)

INCOME TAXES

6.        INCOME TAXES

A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:

	2024			2023
Computed tax at the federal statutory rate	$	92,555		$	294,398
State taxes, net of federal benefit		10,000			62,193
Other		669			1,383
Provision for income taxes	$	103,224		$	357,974
Current income taxes	$	103,224		$	357,974
Deferred income taxes		(21,154	)		(294,877	)
	$	82,070		$	63,097

Deferred income tax asset as of August 31, 2024 of $341,029 (August 31, 2023 – $319,875) reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

	2024			2023
Deferred tax assets:
Allowance for inventory	$	443,913		$	496,067
Allowance for bad debts		—			—
Difference between book and tax depreciation		(13,587	)		(86,895	)
Total deferred tax assets		430,326			409,172
Valuation allowance		—			—
Net deferred tax assets		430,326			409,172
Net deferred tax liability		(89,297	)		(89,297	)
Combined net deferred tax asset (liability)	$	341,029		$	319,875