XML 34 R17.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 9 - INCOME TAXES
The Company’s effective tax rate (“ETR”) is calculated quarterly based upon current assumptions relating to the Company’s known and estimable operating results and various
tax-related
items.
The Company’s ETR was 57.3% and (19.7)% for the three months ended March 31, 2024 and 2023, respectively. The Company’s general and administrative expenses are generally considered
start-up
costs and are not currently deductible for federal income tax purposes.
The difference between the effective tax rate of 57.3% and the U.S. federal statutory rate of 21% for the three months ended March 31, 2024 was primarily due to the change in the valuation allowance (as a result of dividend and interest income earned on the Company’s Trust Account), and the permanent differences arising from interest and penalties on income taxes.
The difference between the effective tax rate of (19.7)% and the U.S. federal statutory rate of 21% for the three months ended March 31, 2023 was primarily due to the change in the valuation allowance (as a result of dividend and interest income earned on the Company’s Trust Account), the permanent difference arising from the loss on change in fair value of the over-allotment liability and ETR adjustments.
 
The Company has no uncertain tax positions related to federal and state income taxes. The federal tax returns for the Company since inception remains open for examination.
When the Company is assessed interest or penalties it will be
classified
in the financial statements as tax expense. For the three months ended March 31, 2024, the Company incurred $22,012 of interest and penalties on the unremitted income tax obligations. No interest or penalties were incurred during the three months ended March 31, 2023.