Reso 2010-1605 - Laserfiche WebLink

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4. PROPERTY AND EQUIPMENT Property and equipment consists of the following: Estimated Useful Balance Lives Vehicles S1,568,289 5 Years Equipment 6.757.373 5 - 7 Years Furniture-Fixtures 1656$ 5 - 7 Years Land-Building 1,713.959 39 Years 10.056.189 Less: Accumulated Depreciation (7,229,602) S 2.826.587 • 5. BENEFIT OBLIGATIONS On January 1, 2000, the Company adopted a 401(k)plan which allows employees to defer a percentage of their compensation. Under the plan,employees may elect to defer up to 15%of their compensation, subject to the Internal Revenue Service limits.The Company may match employee deferrals of up to 3% of the employee compensation. Employer matching contributions totaled 532,87S for the year ended December 31, 2009. The Company elected to not tmal:e employer matching contributions as of July 1, 2009. 6. LONG-TERM DEBT Long-term debt consists of one note payable to Kelly Tractor Company dated January I,2005. It is collateralized by equipment and is payable in 36 monthly installments of$3,945 without interest through December 31, 2010. Balance at December 31,2009 of 542,86S is less unamortized discount of 5979 using an effective rate of 2.5%. 7. LINE OF CREDIT The Company has an unsecured line of credit in the amount of 52,500,000 with Fifth Third Bank, which expires May 31. 2010. Interest is at 2.5% plus one-month LIBOR. As of December 31. 2009, the Company does not have any outstanding amount against the line of credit. S. INCOME- TAXES The Company, with the consent of its stockholders, has elected under the Internal Revenue Code to be a Sub-Chapter S corporation. In lieu of corporate income taxes, the stockholders are taxed on their proponionate share of the Company's taxable income. Therefore, no provision or liability for Federal income taxes has been included in the financial statements. The Florida corporation income tax does not apply. except where the Company is liable for Federal income tax.