NOTE 9 FEDERAL AND STATE INCOME TAXES
The (benefit) provision for income taxes at February 28, 2017, and February 29, 2016 consisted of:
| 2017 | 2016 | ||||||
| State income tax: | |||||||
| Current, net of refund | $ | 2,004 | $ | 1,867 | |||
| Federal (benefit) income tax: | |||||||
| Deferred | (40,689 | ) | (125,496 | ) | |||
| Current | (203,015 | ) | 483,335 | ||||
| Total | $ | (241,700 | ) | $ | 359,706 | ||
The reconciliation of income taxes shown in the financial statements and amounts computed by applying the Federal expected tax rate of 34% is as follows:
| 2017 | 2016 | ||||||
| (Loss) income before tax | $ | (776,699 | ) | $ | 1,142,570 | ||
| Computed expected (benefit) tax | $ | (264,078 | ) | $ | 388,474 | ||
| State income and franchise tax/(refund) | 1,323 | 1,232 | |||||
| Other | 21,055 | (30,000 | ) | ||||
| (Benefit) provision for taxes | $ | (241,700 | ) | $ | 359,706 | ||
The components of deferred tax liabilities at February 28, 2017, and February 29, 2016, respectively, are as follows:
| 2017 | 2016 | ||||||
| Deferred compensation cost | $ | 49,228 | $ | 7,559 | |||
| Depreciation and amortization | (156,596 | ) | (173,700 | ) | |||
| Allowance for bad debts and other | 24,946 | 43,030 | |||||
| Deferred tax liabilities | $ | (82,422 | ) | $ | (123,111 | ) | |