INCOME TAXES

Income tax expense (benefit) is comprised of the following:



	December 31,
	2014			2013
Federal:
Current	$	(450,000	)	$	432,000
Deferred	39,000			(88,000		)
	(411,000		)	344,000
State:
Current	(91,000		)	60,000
Deferred	4,000			(13,000		)
	(87,000		)	47,000

	$	(498,000	)	$	391,000

The provision for income taxes differs from the amount determined by applying the federal statutory tax rate to pre-tax income as a result of the following:



	December 31,
	2014					2013
Income taxes at statutory rate	$	(445,000	)	34.0	%	$	368,000		34.0	%
Increase (decrease) in taxes resulting from:
State income taxes, net of federal benefit	(47,000		)	3.6	%	49,000			4.5	%
Other	(6,000		)	(0.5	)%	(26,000		)	(2.4	)%

	$	(498,000	)	37.1	%	$	391,000		36.1	%

Prepaid income taxes relate to amounts refundable from federal and state tax authorities for overpayment of estimated taxes that are expected to be applied towards future required payments.

Deferred tax assets (liabilities) are as follows:



	December 31,
	2014			2013
Depreciation	$	(663,000	)	$	(630,000	)
Unrealized losses on investments available for sale	3,000			27,000
Provision for doubtful accounts	105,000			111,000
Vacation accrued	91,000			86,000
Deferred income	161,000			170,000
Other	81,000			81,000

Net deferred tax asset (liability)	(222,000		)	(155,000		)

Current portion, net	441,000			475,000
Long-term portion, net	(663,000		)	(630,000		)

	$	(222,000	)	$	(155,000	)