v3.25.2
Income Taxes
 6 Months Ended
May 31, 2025
Income Taxes [Abstract]  
INCOME TAXES

NOTE H – INCOME TAXES

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates in effect in the years in which the differences are expected to reverse.

 

The Company’s deferred income taxes are comprised of the following:

 

   May 31,   November 30, 
   2025   2024 
Deferred Tax Assets        
Depreciation  $46,533   $43,847 
Allowance for bad debts   22,115    17,493 
Inventory   84,450    84,450 
Facilities rental   40,591    39,668 
Other   52,157    75,398 
           
Total deferred tax assets   245,846    260,856 
Valuation allowance   
-
    
-
 
Deferred Tax Assets  $245,846   $260,856 

A valuation allowance for the deferred tax assets relates principally to the uncertainty of the utilization of deferred tax assets and was calculated in accordance with the provisions of ASC 740, which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.

 

The Company’s income tax expense consists of the following:

 

   Six Months Ended 
   May 31,
2025		   May 31,
2024		 
Current:        
Federal  $36,794   $18,976 
States   14,310    17,253 
    51,104    36,229 
           
Deferred:          
Federal   10,807    
-
 
States   4,203    19,024 
    15,010    19,024 
Provision for income taxes  $66,114   $55,253 

 

The Company files a consolidated income tax return with its wholly-owned subsidiaries. A reconciliation of the difference between the expected income tax rate using the statutory federal tax rate and the Company’s effective rate is as follows:

 

   Six Months Ended 
   May 31,   May 31, 
   2025   2024 
U.S Federal Income tax statutory rate   21%   21%
State income taxes   5%   5%
Other-primarily state franchise taxes   1%   4%
Effective tax rate   27%   30%