Income Taxes

9 Months Ended

Sep. 30, 2011

Income Taxes

Income Tax Disclosure [Text Block]

Note G- Income Taxes

The components of income tax (benefit) expense for each of the nine months ended September 30, 2011 and 2010 are as follows:

	Nine months		Nine months
	ended		ended
	September  30,		September  30,
	2011		2010
Federal:
Current	$	-	$	-
Deferred		-		-
		-		-
State:
Current		-		-
Deferred		-		-
		-		-
Total	$	-	$	-

The Company has a net operating loss carryforward of approximately $66,000 for Federal income tax purposes.  The amount and availability of any future net operating loss carryforwards may be subject to limitations set forth by the Internal Revenue Code.  Factors such as the number of shares ultimately issued within a three year look-back period; whether there is a deemed more than 50 percent change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of the carryforwards.

The Company's income tax expense (benefit) for each of the nine month periods ended September 30, 2011 and 2010, respectively, differed from the statutory federal rate of 34 percent as follows:

	Nine months			Nine months
	ended			ended
	September 30,			September 30,
	2011			2010
Statutory rate applied to income before income taxes	$	(5,200	)	$	(5,700	)
Increase (decrease) in income taxes resulting from:
State income taxes		-			-
Other, including reserve for deferred tax asset
and application of net operating loss carryforward		5,200			5,700
Income tax expense	$	-		$	-

Temporary differences, which consist principally of net operating loss carryforwards, statutory deferrals of expenses for organizational costs and statutory differences in the depreciable lives for property and equipment, between the financial statement carrying amounts and tax bases of assets and liabilities give rise to deferred tax assets and/or liabilities, as appropriate.  As of September 30, 2011 and December 31, 2010, respectively, after giving effect to the March 2007 change in control, the deferred tax asset is as follows:

	September 30,			December 31,
	2011			2010
Deferred tax assets
Net operating loss carryforwards	$	22,400		$	17,300
Less valuation allowance		(22,400	)		(17,300	)
Net Deferred Tax Asset	$	-		$	-

During the nine months ended September 30, 2011 and the year ended December 31, 2010, respectively, the valuation allowance for the deferred tax asset increased by approximately $5,100 and $9,500.