v3.26.1
Income Taxes
 6 Months Ended
May 31, 2026
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,  
    2026     2025  
Deferred Tax Assets            
Depreciation   $ 34,714     $ 35,837  
Allowance for bad debts     27,264       27,264  
Inventory     68,696       68,696  
Facilities rental     39,599       40,876  
Other Accrued Accounts     99,747       56,539  
                 
Total deferred tax assets     270,020       229,212  
Valuation allowance     -       -  
Deferred Tax Assets   $ 270,020     $ 229,212  

 

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,
2026		     May 31,
2025		  
Current:            
Federal   $ 140,313     $ 36,794  
States     43,785       14,310  
      184,098       51,104  
                 
Deferred:                
Federal     (29,382 )     10,807  
States     (11,426 )     4,203  
      (40,808 )     15,010  
Provision for income taxes   $ 143,290     $ 66,114  

 

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,  
    2026     2025  
U.S Federal Income tax statutory rate     21 %     21 %
State income taxes     5 %     5 %
Other-primarily state franchise taxes     2 %     1 %
Effective tax rate     28 %     27 %

 

State franchise taxes include taxes not based on income and taxes based on income for entities filing separate income tax returns for state filing purposes. The effect of foreign income taxes has not been presented as the amount is not material.