Note 15 Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8 Note 9 Note 10 Note 11 Note 12 Note 13 Note 14 Note 16 Note 17 Note 18 Note 19 Note 20 NOTE 15: INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return. Before the Merger, Arbitrade was treated as a partnership for U.S. tax purposes and its federal and state income taxes were borne by Arbitrade’s individual partners. As such Arbitrade’s historical financial statements do not include a provision for federal or state income taxes. The provision for income taxes consists of: The following table reconciles the provision to the U.S. federal statutory income tax rate: Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2001, 2000 and 1999 are as follows: