The following is the composition of income tax (benefit) expense:

 

		2017				2016
Current:
Federal		$	(64,760	)		$	374,551
State			(2,578	)			84,270
Total current		$	(67,338	)		$	458,821
Deferred:
Federal		$	230,157			$	216,202
State			3,170				29,095
Total deferred			233,327				245,297
Total income tax expense		$	165,989			$	704,118

 

Deferred tax assets (liabilities) at and are as follows:

 

		2017				2016
Deferred tax assets:
Allowance for doubtful accounts		$	125,674			$	102,110
Accrued compensation			198,431				217,064
Accruals and reserves			83,156				269,868
Charitable Contributions			22,802				14,064
Interest rate swaps			(1,513	)			12,981
Subpart F Income			-				9,595
State Credits and NOLs			96,165				66,691
Total deferred tax assets			524,715				692,373
Deferred tax liabilities:
Depreciation			(1,592,252	)			(1,711,018	)
Amortization			(2,960,013	)			(2,761,082	)
Total deferred tax liabilities			(4,552,265	)			(4,472,100	)
Net deferred tax liability		$	(4,027,550	)		$	(3,779,727	)

 

Income tax expense differs from the amount computed by applying the statutory tax rate to net income (loss) before income tax expense as follows:

 

		2017				2016
Income tax expense computed at the statutory rate		$	246,733			$	648,022
State income taxes expense, net of federal benefit			19,308				70,354
Meals and entertainment			26,764				28,592
Adjustment to Subpart F Income previously recorded			(138,392	)			-
Other differences			11,576				(42,850	)
Income tax (benefit) expense		$	165,989			$	704,118

 

The Company recognizes interest and penalties related to the unrecognized tax benefits in tax expense. The Company had approximately of interest and penalties accrued at and

 

Generally, the Company is subject to federal and state tax examinations by tax authorities for years after