Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

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Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2013
Accounting Policies [Abstract]  
Effect of Adjustments to Revise Balance Sheet

The following are selected line items from our balance sheet as of December 31, 2012, illustrating the effect of the adjustments to revise the balance sheet:

 

     Consolidated Balance Sheet as of December 31, 2012  
     As Previously
Reported
    Adjustment     As Revised  

Other assets(1)

   $ 285,521      $ 484,947      $ 770,468   

Total assets

     40,500,901        484,947        40,985,848   

Deferred tax liability

     (258,729     (484,947     (743,676

Total liabilities

     (32,364,175     (484,947     (32,849,122

 

(1)  As previously reported, Other assets included $234,891 of income taxes receivable as of December 31, 2012.
Delineates Current and Deferred Portions of Income Tax Provision

In addition, the footnote disclosure which delineates the current and deferred portions of the income tax provision was impacted as follows:

 

     For the Year Ended December 31, 2012  
     As Previously
Reported
     Adjustment     As Revised  

Current portion

   $ 216,591       $ (484,947   $ (268,356

Deferred portion

     83,728         484,947        568,675   

Total income taxes

     300,319         —          300,319   
Reconciliation between United States, or U.S, Statutory Federal Income Tax Rate and Effective Income Tax Rate

A reconciliation between the U.S., statutory federal income tax rate and our effective income tax rate for the nine months ended September 30, 2013 and 2012 is provided in the following table:

 

     Nine Months Ended
September 30, 2013
    Nine Months Ended
September 30, 2012(1)
 

U.S. statutory federal income tax rate

     34.0     34.0

State taxes, net of U.S. federal income tax benefit(2)

     23.6     10.2

Other adjustments(3)

     12.2     0.4
  

 

 

   

 

 

 

Effective tax rate

     69.8     44.6
  

 

 

   

 

 

 

 

(1)  Based on the effective tax rate for the year ended December 31, 2011, as that rate represents our best estimate of the effective tax rate in effect as of September 30, 2012, based on the information available at the time.
(2)  From 2010 to 2012, California state tax returns were filed on a unitary basis with our Adviser. In 2011, we began filing state tax returns in Florida, and, for 2013, we will also begin filing state tax returns in Michigan and Oregon. The overall state tax rate is higher due to the deferred intercompany gain mentioned above, which is a fixed amount due to the state of California and is not based on the amount of income apportioned to the state.
(3)  Adjustment made in 2013 income taxes related to prior-year adjustments.