Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.3.1.900
Income Taxes
12 Months Ended
Dec. 31, 2015
Income Taxes  
Income Tax Disclosure [Text Block]

Note 11 – Income Taxes

 

For the years ended December 31 2015 and 2014, the Company recognized income tax expense (benefit) of $(32,150) and $80,951, respectively.

 

Income tax provisions for the years ended December 31,:

  

    2015     2014  
Current tax expense            
Federal   $ -     $ 29,895  
State     -       2,347  
              32,242  
Deferred tax expense (benefit)                
Federal     (32,150 )     45,163  
State     -       3,546  
      (32,150 )     48,709  
Total   $ (32,150 )   $ 80,951  

 

The reconciliations of the results of applying the Company's effective statutory federal income tax rate of 34% for the years ended December 31, 2015 and 2014 to the Company's income before taxes and the Company's provision for income taxes are as follows:

 

    2015     2014  
Federal income taxes     34.00 %     34.00 %
State income taxes     3.63 %     3.63 %
Effective tax rate     37.63 %     37.63 %

  

The components of the deferred tax assets, net of deferred tax liabilities for each period are:

 

    2015     2014  
Property and equipment   $ 21,512     $ 48,709  
Expenses paid by related party, not settled as of year end     (53,662 )     -  
Total Long term deferred tax liabilities   $ (32,150 )   $ 48,709