6. INCOME TAXES
The components of the provision for income taxes are as follows:
<TABLE>
<CAPTION>
1997 1996 1995
(in thousands)
<S> <C> <C> <C>
Current Federal income tax expense $ 682 $ 85 $ 42
Current State income tax expense 136
Deferred Federal and State income tax expense 245
Total $ 1,063 $ 85 $ 42
</TABLE>
DBA's effective tax rate differs from the statutory federal income tax rate
for the following reasons:
<TABLE>
<CAPTION>
1997 1996 1995
(in thousands)
<S> <C> <C> <C>
Computed Federal statutory amount $ 968 $ 423 $ 525
State income taxes, net of federal benefit 136
Change in valuation allowance for deferred tax assets (354) (374)
Other (41) 16 (109)
$ 1,063 $ 85 $ 42
</TABLE>
The tax effect of temporary differences that give rise to deferred tax assets
and deferred tax liabilities at June 30, 1997 and 1996 are presented below:
<TABLE>
<CAPTION>
1997 1996
(in thousands)
<S> <C> <C>
Deferred Tax Assets:
Net operating loss carryforwards $ 41
Alternative minimum tax credits 399
Deferred compensation $ 117 137
Reserve for uncompleted contracts 510 92
Other individually immaterial items 216 340
Total deferred tax assets 843 1,009
Deferred Tax Liabilities:
Depreciation 1,020 982
Purchase accounting adjustment 68 63
Total deferred tax liabilities 1,088 1,045
Total net deferred tax asset (liability) $ (245) $ (36)
</TABLE>
