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Annual report pursuant to Section 13 and 15(d)

Note 6 - Income Taxes

v3.6.0.2
Note 6 - Income Taxes
12 Months Ended
Dec. 31, 2016
Notes to Financial Statements Ìý
Income Tax Disclosure [Text Block]
(
6
)
Income
Taxes
Ìý
The income tax provision charged to operations for the years ended
December
31,
2016,
2015
and
2014
was as follows:
Ìý
Ìý
Ìý
Ìý
2016
Ìý
Ìý
2015
Ìý
Ìý
2014
Ìý
Current:
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
U.S. Federal
Ìý $
21,665,130
Ìý Ìý $
25,029,693
Ìý Ìý $
17,243,130
Ìý
State and local
Ìý Ìý
376,041
Ìý Ìý Ìý
400,689
Ìý Ìý Ìý
398,401
Ìý
Ìý Ìý Ìý
22,041,171
Ìý Ìý Ìý
25,430,382
Ìý Ìý Ìý
17,641,531
Ìý
Deferred benefit
Ìý Ìý
(4,193,801
) Ìý Ìý
(185,867
) Ìý Ìý
(974,997
)
Ìý Ìý $
17,847,370
Ìý Ìý $
25,244,515
Ìý Ìý $
16,666,534
Ìý
Ìý
The Trust is taxed as if it were a corporation. Total income tax expense differed from the amounts computed by applying the U.S. Federal income tax rate of
35%
to income before Federal income taxes as a result of the following:
Ìý
Ìý
Ìý
2016
Ìý
Ìý
2015
Ìý
Ìý
2014
Ìý
Computed tax expense at the statutory rate
Ìý $
19,280,422
Ìý Ìý $
26,349,057
Ìý Ìý $
18,001,044
Ìý
Reduction in income taxes resulting from:
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Statutory depletion
Ìý Ìý
(1,608,961
) Ìý Ìý
(1,320,605
) Ìý Ìý
(1,569,762
)
State taxes
Ìý Ìý
204,776
Ìý Ìý Ìý
256,876
Ìý Ìý Ìý
246,534
Ìý
Other, net
Ìý Ìý
(28,867
) Ìý Ìý
(40,813
) Ìý Ìý
(11,282
)
Ìý Ìý $
17,847,370
Ìý Ìý $
25,244,515
Ìý Ìý $
16,666,534
Ìý
Ìý
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at
December
31,
2016
and
2015
are as follows:
Ìý
Ìý
Ìý
2016
Ìý
Ìý
2015
Ìý
Deferred revenue
Ìý $
4,177,130
Ìý Ìý $
—
Ìý
Basis difference in pension plan liability
Ìý Ìý
(36,363
) Ìý Ìý
118,967
Ìý
Total deferred tax assets
Ìý Ìý
4,140,767
Ìý Ìý Ìý
118,967
Ìý
Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý
Basis differences in real estate acquired through foreclosure
Ìý Ìý
233,977
Ìý Ìý Ìý
235,130
Ìý
Deferred installment revenue on land sales for tax purposes
Ìý Ìý
32,002
Ìý Ìý Ìý
47,050
Ìý
Total deferred tax liability
Ìý Ìý
265,979
Ìý Ìý Ìý
282,180
Ìý
Net deferred tax asset (liability)
Ìý $
3,874,788
Ìý Ìý $
(163,213
)
Ìý
The Trust files a U. S. Federal income tax return. With few exceptions, the Trust is no longer subject to U. S. Federal income tax examination by tax authorities for years before
2013.