NOTE 12: INCOME TAXES

3 Months Ended

Nov. 30, 2011

Notes to Financial Statements

NOTE 12: INCOME TAXES

The provision for Federal income tax consists of the following for the six months ended November 30, 2011 and 2010:

	2011		2010
Federal income tax expense (benefit) attributable to:
Current operations	$	131,000	$	(158,000	)
Less: valuation allowance		0		0
Net provision (benefit) for Federal income taxes	$	131,000	$	(158,000	)

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

	November 30, 2011		May 31, 2011
Deferred tax asset attributable to:
Net operating loss carryover	$	354,000	$	485,000
Less: valuation allowance		0		0
Net deferred tax asset (liability)	$	354,000	$	485,000