Note H - Income Taxes

The components of income tax (benefit) expense for each of the three months ended March 31, 2012 and 2011 and for the period from August 1, 2007 (date of bankruptcy settlement) through March 31, 2012 are as follows:

					Period from
					August 1, 2007
					(date of
					bankruptcy
	Three months		Three months		settlement)
	ended		ended		through
	March 31,		March 31,		March 31,
	2012		2011		2012

Federal:
Current	$	-	$	-	$	-
Deferred		-		-		-
		-		-		-
State:
Current		-		-		-
Deferred		-		-		-
		-		-		-

Total	$	-	$	-	$	-

As of March 31, 2012, the Company has a net operating loss carryforward of approximately $45,000 to offset future taxable income. The amount and availability of any net operating loss carryforwards will be subject to the limitations set forth in the Internal Revenue Code. Such factors 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 any net operating loss carryforward(s).

The Company's income tax expense (benefit) for each of the three months ended March 31, 2012 and 2011 and for the period from August 1, 2007 (date of bankruptcy settlement) through March 31, 2012 varied from the statutory rate of 34% as follows:

							Period from
							August 1, 2007
							(date of
							bankruptcy
	Three months			Three months			settlement)
	ended			ended			through
	March 31,			March 31,			March 31,
	2012			2011			2012

Statutory rate applied to
income before income taxes	$	(1,600	)	$	(1,900	)	$	(15,300	)
Increase (decrease) in income
taxes resulting from:
State income taxes		-			-			-
Other, including reserve for
deferred tax asset and application
of net operating loss carryforward		1,600			1,900			15,300

Income tax expense	$	-		$	-		$	-

The Company's only temporary difference due to statutory requirements in the recognition of assets and liabilities for tax and financial reporting purposes, as of March 31, 2012 and December 31, 2011, respectively, relate solely to the Company's net operating loss carryforward(s). This difference gives rise to the financial statement carrying amounts and tax bases of assets and liabilities causing either deferred tax assets or liabilities, as necessary, as of March 31, 2012 and December 31, 2011, respectively:

	March 31,			December 31,
	2012			2011
Deferred tax assets
Net operating loss carryforwards	$	15,300		$	13,700
Less valuation allowance		(15,300	)		(13,700	)

Net Deferred Tax Asset	$	-		$	-

During the three months ended March 31, 2012 and the year ended December 31, 2011, respectively, the valuation allowance for the deferred tax asset increased by approximately $1,600 and $6,600.