content_image/48034.jpg content_image/48035.jpg content_image/48037.jpg content_image/48038.jpg content_image/48036.jpg content_image/48039.jpg
The following summarizes the options outstanding and exercisable for the employee stock plan by exercise price, at January 1, 2005: 

<img src='content_image/48034.jpg'>

<img src='content_image/48035.jpg'>

## (7) Income Taxes 

Earnings before taxes is summarized as follows: 

<img src='content_image/48037.jpg'>

The provision (benefit) for income taxes is summarized as follows: 

<img src='content_image/48038.jpg'>

Reconciliation of the differences between income taxes computed at the federal statutory rate to the effective rate are as follows: 

<img src='content_image/48036.jpg'>

At January 1, 2005 and January 3, 2004, the company had recorded the following deferred tax assets and liabilities, which were comprised of the following: 

<img src='content_image/48039.jpg'>

