Income Taxes

3 Months Ended

Aug. 31, 2011

Notes to Financial Statements

Income Taxes

The provision for Federal income tax consists of the following for the three months ended August 31, 2011 and 2010:

	2011		2010
Federal income tax expense (benefit) attributable to:
Current operations	$	77,000	$	(93,000	)
Less: valuation allowance		0		0
Net provision (benefit) for Federal income taxes	$	77,000	$	(93,000	)

The cumulative tax effect at the expected rate of 35% of significant items comprising our net deferred tax asset is as follows:

	August 31, 2011		May 31, 2011
Deferred tax asset attributable to:
Net operating loss carryover	$	408,000	$	485,000
Less: valuation allowance		0		0
Net deferred tax asset (liability)	$	408,000	$	485,000