Opening of Bids - 3400 Block S. Michigan Street Improvements Proj No. 120-062 - Premium Concrete Services, Inc.

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PREMIUM CONCRETE SERVICES, INC, NOTES TO THE FINANCIAL STATEMENTS December 31, 2019 and 2018 PROPERTY AND EQUIPMENT AND DEPRECIATION Assets are recorded at cost. Depreciation is provided over the estimated useful lives of the assets using the straight-line method. Upon disposal or retirement of any item of property, the cost and related accumulated depreciation are removed from the respective accounts. Any gain or loss from other disposals is included in operations. Maintenance and repairs are charged to operations; renewals and betterments are capitalized. ADVERTISING The Company expenses advertising costs as they are incurred, The total advertising costs expensed in 2019 and 2018 was $27,437 and $26,471, respectively. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 — PROVISION FOR INCOME TAXES Effective November 24, 2004, the Company, with the consent of its shareholders, elected to have its income taxed under Section 1362 of the Internal Revenue Code and similar sections of state income tax laws. These sections provide that, in lieu of corporate income taxes, the shareholders are taxed on their proportionate share of the Company's taxable income. The federal and state income tax returns of the Company for 2016, 2017, and 2016 are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed.