of income tax expense for the years ended and were as follows:

 

 

n income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended and is as follows:

table summarizes the components of deferred taxes at and

740

10

30

2

, deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  On the Tax Cuts and Jobs Act of was enacted, which provides for a reduction in the corporate tax rate from a maximum tax rate of percent to a flat tax rate of percent effective for tax years beginning after As a result, the Company revalued its deferred tax assets and liabilities as of and recorded the effect of this change as a component of tax expense.  The tax expense recorded related to the change in the enacted federal tax rate as of was  

December 31,

20

the Company had net operating loss carryforwards totaling approximately for federal taxes and for state taxes that will begin to expire in unless previously utilized. The federal operating loss carryforwards are subject to limitation under Section of the Internal Revenue Code of as amended (the “Code”), but are expected to be utilized within the carryforward period. The state net operating loss carryforwards are also subject to limitation under Section of the Code. These net operating losses are also expected to be utilized during the carryforward period.