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Income Taxes
 12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE 4 – Income Taxes

 

The Company accounts for income taxes in accordance with ASC Topic No. 740. This standard requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carryforwards.

 

The Company has available at December 31, 2011, unused operating loss carryforwards of approximately $1,263,924, which may be applied against future taxable income and which expire in various years through 2031. However, if certain substantial changes in the Company’s ownership should occur, there could be an annual limitation on the amount of net operating loss carryforward which can be utilized. The amount of and ultimate realization of the benefits from the operating loss carryforwards for income tax purposes is dependent, in part, upon the tax laws in effect, the future earnings of the Company and other future events, the effects of which cannot be determined. Because of the uncertainty surrounding the realization of the loss carryforwards, the Company has established a valuation allowance equal to the tax effect of the loss carryfowards of approximately $189,589 and $52,293 at December 31, 2011 and 2010, respectively, and, therefore, no deferred tax asset has been recognized for the loss carryforwards. The change in the valuation allowance is approximately $137,296 and $52,293 for the years ended December 31, 2011 and 2010, respectively.

 

 

Deferred tax assets are comprised of the following:

 

    2011     2010  
Deferred tax assets:                
NOL carryover   $ 189,589     $ 52,293  
Valuation allowance     (189,589 )     (52,293 )
                 
Net deferred tax asset   $ -     $ -  

 

The reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the Company’s effective tax rate for the period ended December 31, 2011 and 2010 is as follows:

 

    2011     2010  
Book Income   $ (136,519 )   $ (63,292 )
Organization costs     (777 )     10,999  
Valuation allowance     137,296       52,293  
                 
Tax at statutory rate   $ -     $ -