Investment in Pacific Northwest Capital Corporation

9 Months Ended

Sep. 30, 2015

Investment in Pacific Northwest Capital Corporation [Abstract]

Investment in Pacific Northwest Capital Corporation

Note 10. Investment in Pacific Northwest Capital Corporation

During the first quarter of 2014, we purchased additional shares of Pacific Northwest Capital Corporation (Pacific Northwest). The purchase increased our total investment in Pacific Northwest to 850,000 shares or approximately 22.4% ownership of Pacific Northwest.

As a result of the increased ownership of Pacific Northwest, the Company changed its method of carrying the investment from cost to equity as required by GAAP. Under the equity method, the Company records its proportionate share of the earnings of Pacific Northwest. There was no effect of the change in accounting method for the three months ended September 30, 2014. The effect of the change in accounting method for the nine months ended September 30, 2014, was to increase loss before provision for income taxes and net loss by $72,306. The change for the period ended December 31, 2014 decreased the investment in Pacific Northwest to zero.