Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
6 Months Ended
Jun. 30, 2013
Income Tax Disclosure [Abstract]  
Components of deferred tax assets and liabilities
Components of the Company’s deferred tax assets and liabilities as of June 30, 2013 and
November 30, 2012 are as follows:
Deferred Tax Assets and Liabilities

 
June 30, 2013
 
November 30, 2012
Deferred Tax Assets:
 
 
 
 
Organization costs
 
$

 
$
(17,668
)
Net operating loss carryforwards
 
(40,912
)
 
(6,411,230
)
Net unrealized loss on investment securities
 
(1,166,612
)
 

Cost recovery of leased and fixed assets
 
(1,354,659
)
 
(36,443
)
Asset acquisition costs
 

 
(134,415
)
AMT and State of Kansas credit
 

 
(196,197
)
Sub-total
 
$
(2,562,183
)
 
$
(6,795,953
)
Deferred Tax Liabilities:
 
 
 
 
Basis reduction of investment in partnerships
 
$
5,353,276

 
$
11,655,817

Net unrealized gain on investment securities
 

 
2,312,269

Sub-total
 
5,353,276

 
13,968,086

Total net deferred tax liability
 
$
2,791,093

 
$
7,172,133

Total income tax expense
Total income tax expense differs from the amount computed by applying the federal statutory income tax rate of 35 percent for the three and six months ended June 30, 2013 and May 31, 2012 to income or loss from operations and other income and expense for the years presented, as follows:
Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
For the Six Months Ended

 
June 30, 2013
 
May 31, 2012
 
June 30, 2013
 
May 31, 2012
Application of statutory income tax rate
 
$
109,139

 
$
1,108,421

 
$
1,310,934

 
$
4,332,956

State income taxes, net of federal tax benefit
 
9,568

 
82,974

 
71,839

 
324,353

Dividends received deduction
 

 
(1,233
)
 

 
(1,233
)
Income of Real Estate Investment Trust
 
123,047

 

 
(120,075
)
 

Total income tax expense
 
$
241,754

 
$
1,190,162

 
$
1,262,698

 
$
4,656,076

Components of income tax expense
The components of income tax expense include the following for the periods presented:
Components of Income Tax Expense (Benefit)
 
 
For the Three Months Ended
 
For the Six Months Ended

 
June 30, 2013
 
May 31, 2012
 
June 30, 2013
 
May 31, 2012
Current tax expense
 
 
 
 
 
 
 
 
Federal
 
$
546,816

 
$

 
$
815,021

 
$

State (net of federal tax benefit)
 
34,941

 

 
52,627

 

AMT expense
 

 

 

 
10,000

Total current tax expense
 
581,757

 

 
867,648

 
10,000

Deferred tax expense
 
 
 
 
 
 
 
 
Federal
 
(314,630
)
 
1,107,275

 
375,838

 
4,322,506

State (net of federal tax benefit)
 
(25,373
)
 
82,887

 
19,212

 
323,570

Total deferred tax expense (benefit)
 
(340,003
)
 
1,190,162

 
395,050

 
4,646,076

Total income tax expense, net
 
$
241,754

 
$
1,190,162

 
$
1,262,698

 
$
4,656,076

Aggregate cost of securities for federal income tax purposes and securities with unrealized appreciation and depreciation
The aggregate cost of securities for federal income tax purposes and securities with unrealized appreciation and depreciation, were as follows:
Aggregate Cost of Securities for Income Tax Purposes

 
June 30, 2013
 
November 30, 2012
Aggregate cost for federal income tax purposes
 
$
10,003,584

 
$
41,995,195

Gross unrealized appreciation
 
11,236,351

 
33,892,176

Gross unrealized depreciation
 

 
(801,340
)
Net unrealized appreciation
 
$
11,236,351

 
$
33,090,836