Note 3 - Income Taxes

12 Months Ended

Dec. 31, 2014

Note 3.

Income Taxes

The Company files federal and state income tax returns on a calendar year basis.

The net deferred tax liability in the accompanying balance sheets includes the following components at December 31, 2014 and 2013:

	2014					2013
	Current		Non-Current			Current		Non-Current

Deferred tax assets	$	--	$	--		$	--	$	--
Deferred tax liabilities		--		(224,426	)		--		(181,818	)
	$	--	$	(224,426	)	$	--	$	(181,818	)

Reconciliations between the United States Federal statutory income tax provision, using the statutory rate of 34%, and the Company’s provision for income taxes at December 31, 2014 and 2013 are as follows:

	2014			2013
Income tax on income before extraordinary item:
Tax at statutory rates	$	654,842		$	471,109
Tax effect of the following:
Statutory depletion		(69,680	)		(87,526	)
Section 1033 deferred gain		(36,217	)		--
State income tax		49,519			33,546
Other		60			(1,285	)
Income tax on income	$	598,524		$	415,844

Deferred income taxes result from timing differences in the recognition of revenue and expenses for tax and financial statement purposes. The effect of these timing differences at December 31, 2014 and 2013 is as follows:

	2014					2013
	Current		Non-Current			Current		Non-Current
Casualty loss		--		(121,239	)		--		(121,239	)
Deferred gain		--		(103,187	)		--		(60,579	)
	$	--		(224,426	)	$	--		(181,818	)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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