INTL FCStone 2005 Annual Report Download - page 69

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INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements—(Continued)
September 30, 2005 and 2004
(20) Income Taxes
Income tax expense (benefit) for the years ended September 30, 2005 and 2004 consisted of:
Current Deferred Total
2005:
United States ................................. $ 281,932 $206,543 $ 488,475
United Kingdom ............................... 806,529 806,529
State and local ................................ 114,883 74,010 188,893
$1,203,344 $280,553 $1,483,897
as restated as restated as restated
2004:
United States ................................. $1,414,712 $ (16,751) $1,397,961
United Kingdom ............................... 79,754 79,754
State and local ................................ 525,605 (5,601) 520,004
$2,020,071 $ (22,352) $1,997,719
A reconciliation of the expected U.S. Federal tax expense, computed at the rate of 34% of income before
taxes, to the actual tax expense for the years ended September 30, 2005 and 2004, is as follows:
2005
As restated
2004
Amount
%of
pretax
income Amount
%of
pretax
income
Computed “expected” tax expense ........................... $1,400,532 34.0% $ 639,034 34.0%
Increase (decrease) in income tax expense resulting from:
Non-deductible amortization of beneficial conversion
feature ........................................... 972,985 51.8%
State income taxes, net of Federal income tax benefit ........ 120,609 2.9% 343,202 18.2%
Meals and entertainment expenses not deductible for tax
purposes .......................................... 24,835 0.6% 23,339 1.3%
Memberships ........................................ 1,994 0.1% 5,379 0.3%
Foreign income ...................................... (64,882) (1.6)% 11,498 0.6%
Other,net ........................................... 809 0.0% 2,282 0.1%
$1,483,897 36.0% $1,997,719 106.3%
F-29