INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2018

INCOME TAXES

Schedule of components of income tax expense from operations

	2018		2017
Current: Federal	$	1,294,253	$	2,348,725
Current: State		423,209		383,662
		1,717,462		2,732,387
Deferred: Federal		(470,166)		(223,283)
Deferred: State		(83,296)		(20,104)
		(553,462)		(243,387)
Income tax expense	$	1,164,000	$	2,489,000

Schedule of difference between the income tax expense and that which would be calculated using the statutory income tax rate

	2018		2017
Tax at statutory rate	$	1,160,247	$	1,903,502
Nondeductible business expenses		405,996		402,980
State income taxes, net of federal tax benefit		306,918		244,587
Change in deferred tax rate due to tax reform legislation		(778,000)		—
Other		68,839		(62,069)
	$	1,164,000	$	2,489,000

Schedule of temporary differences between the financial statement carrying balances and tax basis of assets and liabilities giving rise to the net deferred tax asset (liabilities)

	2018		2017
Deferred tax assets:
Allowance for doubtful accounts	$	210,734	$	282,576
Accrued expenses		779,282		1,185,624
Inventory		272,946		502,042
Other		23,237		—
Property and equipment		—		28,713
Net operating loss carry forwards - federal		92,421		195,675
Net operating loss carry forwards - state		697,013		592,559
Total gross deferred tax assets		2,075,633		2,787,189
Less: Valuation allowance		(697,013)		(592,559)
Total net deferred tax assets		1,378,620		2,194,630
Deferred tax liabilities:
Trade discounts		285,439		410,793
Property and equipment		1,361,508		1,395,560
Goodwill		921,799		1,381,953
Intangible assets		592,675		1,342,587
Total deferred tax liabilities		3,161,421		4,530,893
Total net deferred income tax liability	$	1,782,801	$	2,336,263