INCOME TAXES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

INCOME TAXES

Note 7– INCOME TAXES

The Company adheres to the provisions of uncertain tax positions as addressed in ASC 740 “Income Taxes” (“ASC 740”). As of March 31, 2022, the Company had net operating loss carry forwards of $18,444 that may be available to reduce future years’ taxable income in varying amounts through 2041. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

The valuation allowance at March 31, 2022 was $18,444. The net change in valuation allowance for the three months ended March 31, 2022 was $1,235. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized.

The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on consideration of these items, management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance as of March 31, 2022. All tax years since inception remain open for examination by taxing authorities.

10

Crona Corp.

NOTES TO THE FINANCIAL STATEMENTS

March 31, 2022

The provision for Federal income tax consists of the following:

		As of March 31, 2022		As of December 31, 2021
Non-current deferred tax assets:
Net operating loss carry forward	$	(18,444)	$	(17,209)
Valuation allowance		18,444		17,209
Net deferred tax assets	$	-	$	-

The actual tax benefit at the expected rate of 21% differs from the expected tax benefit for the periods as follows:

		As of March 31, 2022		As of December 31, 2021
Computed “expected” tax expense (benefit)	$	(1,235)	$	(3,695)
Change in valuation allowance		1,235		3,695
Actual tax expense (benefit)	$	-	$	-

The related deferred tax benefit on the above unutilized tax losses has a full valuation allowance not recognized against it as there is no certainty of its realization. Management has evaluated tax positions in accordance with ASC 740 and has not identified any significant tax positions, other than those disclosed.