INCOME TAXES

12 Months Ended

Dec. 31, 2013

INCOME TAXES [Abstract]

INCOME TAXES

8.INCOME TAXES

The provision for income taxes consists of the following:

Years ended December 31,	2013	2012	2011
Current:
Federal	$3,524,000	$5,503,000	$3,220,000
State	---	---	5,000
Deferred:
Federal	(107,000)	11,000	(103,000)
	$3,417,000	$5,514,000	$3,122,000

The difference between the income tax provision computed at the federal statutory rate and the actual tax provision is accounted for as follows:

December 31,	2013	2012	2011
Taxes computed at the federal
statutory rate State income tax, net of federal benefit	$3,792,000 --	$5,701,000 ---	$3,583,000 3,000
Prior year true-up	190,000	47,000	(61,000)
Domestic Production Activity Credit	(340,000)	(523,000)	(322,000)
Other Permanent differences	(225,000)	289,000	(81,000)
Provision for Income Taxes	$3,417,000	$5,514,000	$3,122,000

The components of deferred income tax assets and liabilities are as follows:

Deferred Tax Assets:	2013	2012
Revenue recognition	$408,000	$422,000
Allowance for doubtful accounts	9,000	112,000
Deferred tax asset-current	417,000	534,000
Deferred rent	191,000	175,000
Stock options	931,000	805,000
Interest rate swap	11,000	21,000
Deferred Tax Assets-non current	1,133,000	1,001,000
Deferred Tax Liabilities:
Prepaid expenses	89,000	102,000
Deferred Tax Liabilities-current	89,000	102,000
Property and equipment	788,000	867,000
Deferred tax liability-noncurrent	788,000	867,000
Net Deferred Tax Assets	$673,000	$566,000

The Company recognized, for income tax purposes, a tax benefit of $27,000, $313,000 and $438,000 for the years ended December 31, 2013, 2012 and 2011, respectively, for compensation expense related to its stock option plan for which no corresponding charge to operations has been recorded.  Such amounts have been added to additional paid-in capital in those years.