Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
6 Months Ended
Jun. 30, 2011
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 10     INCOME TAXES
 
The Company utilizes the asset and liability approach to measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
The income tax provision for the six months ended June 30, 2011 and 2010 consists of the following:

     
 
Six Months Ended
June 30,
 
 
2011
 
2010
 
Current Income Taxes
  $ 2,300     $ -  
Deferred Income Taxes
               
     Federal
    7,015,000       3,915,000  
     State
    1,535,000       695,000  
Total Provision
  $ 8,552,300     $ 4,810,000  

Under FASB ASC 740-10-05-6, tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities.  The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement.  Unrecognized tax benefits are tax benefits claimed in the Company's tax returns that do not meet these recognition and measurement standards.

The Company has no liabilities for unrecognized tax benefits.  

The Company's policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense.  For the six months ended June 30, 2011, the Company did not recognize any interest or penalties in its condensed statement of operations, nor did it have any interest or penalties accrued in its condensed balance sheet at June 30, 2011 relating to unrecognized benefits.

The tax years 2010, 2009, 2008 and 2007 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject.