Note 8 - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

8.

INCOME TAXES

The provision for income taxes consists of the following:

		201 6		201 5		201 4
Current provision:
	Federal	$	3,108,894	$	3,045,292	$	3,368,974
	State		486,565		482,186		548,225
			3,595,459		3,527,478		3,917,199
Deferred provision (benefit):
	Federal		183,520		212,563		210,343
	State		21,591		76,607		(26,853	)
			205,111		289,170		183,490
		$	3,800,570	$	3,816,648	$	4,100,689

Income before income taxes is earned in the following tax jurisdictions:

	201 6			201 5			201 4
United States	$	9,070,894		$	9,272,854		$	10,339,632
United Kingdom		(81,987	)		(43,567	)		557,776
Canada		1,034,027			813,824			874,571
Australia		82,622			48,633			102,922
Spain		97,273			127,309			(67,291	)
	$	10,202,829		$	10,219,053		$	11,807,610

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:

	201 6		201 5
Deferred income tax assets:
Capitalized inventory costs	$	265,454	$	260,385
Warrants and share-based compensation		44,151		44,151
Accrued expenses, reserves, and other		65,631		66,444
Total deferred income tax assets	$	375,236	$	370,980
Deferred income tax liabilities:
Property and equipment depreciation	$	1,728,265	$	1,529,397
Goodwill and other intangible assets amortization		227,767		217,268
Total deferred income tax liabilities	$	1,956,032	$	1,746,665

The effective tax rate differs from the statutory rate as follows:

	201 6			201 5			201 4
Statutory rate – Federal US income tax		34	%		34	%		34	%
State and local taxes		6	%		6	%		5	%
Non-U.S. income tax at different rates		-			-			(1	%)
Domestic production activities deduction		(1	%)		(1	%)		(1	%)
Other, net		(2	%)		(2	%)		(2	%)
Effective rate		37	%		37	%		35	%

We file a consolidated U.S. income tax return as well as state tax returns on a consolidated, combined, or stand-alone basis, depending on the jurisdiction. We are no longer subject to U.S. federal income tax examinations by tax authorities for years prior to the tax year ended

December

2014.

Depending on the jurisdiction, we are no longer subject to state examinations by tax authorities for years prior to the

December

2013

and

December

2014

tax years.