Note 5 - Income Taxes

3 Months Ended

Apr. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 5 - Income Taxes

We follow Accounting Standards Codification regarding Accounting for Income Taxes. Deferred income taxes reflect the net effect of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carryforwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carryforward has been recognized, as it is not deemed likely to be realized.

The provision for refundable Federal income tax consists of the following:

			2011		2010
Refundable Federal income tax attributable to:
	Current operations	$	(332,365)	$	(108,012)
Less, Nondeductible expenses			-0-		-0-
	-Less, Change in valuation allowance		332,364		108,012
Net refundable amount			-0-		-0-

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

			2011		2010
Deferred tax asset attributable to:
	Net operating loss carryover	$	596,057	$	263,692
Less, Valuation allowance			(596,057)		(263,692)
	Net deferred tax asset		-		-

At October 31, 2011, an unused net operating loss carryover approximating $1,295,225 is available to offset future taxable income; it expires beginning in 2034.

Reconciliation between the statutory rate and the effective tax rate is as follows at October 31, 2011 and 2010:

Federal statutory tax rate	(35.0	)%
Permanent difference and other	35.0	%
Effective tax rate	0.0	%