content_image/24149.jpg content_image/24147.jpg content_image/24146.jpg
The provision for federal income taxes differs from the amount computed by applying the federal income tax statutory rate of 35 percent on income from operations as indicated in the following analysis: 

<img src='content_image/24149.jpg'>

The net deferred tax asset (liability) at December 31, 2002 and 2001 is as follows: 

<img src='content_image/24147.jpg'>

A summary of the changes in the net deferred tax asset (liability) for the years ended December 31, 2002 and 2001 is as follows: 

<img src='content_image/24146.jpg'>

Retained earnings at December 31, 2002 and 2001 included approximately $14,791,000 accumulated prior to January 1, 1987 for which no provision for federal income taxes has been made. If this portion of retained earnings is used in the future for any purpose other than to absorb bad debts, it will be added to future taxable income. 

