Entity information:
7.
Income Taxes
 
Our income tax liability $448,099 is included in Accounts payable and accrued liabilities.
 
A reconciliation of the income tax expense (benefit) is as follows:
 
 
 
Year ended December 31,
 
 
 
2017
 
2016
 
2015
 
Current income taxes
 
$
442,515
 
$
-
 
$
-
 
Deferred income taxes
 
 
11,623
 
 
(1,563)
 
 
(4,476)
 
Total expense (benefit)
 
$
454,138
 
$
(1,563)
 
$
(4,476)
 
Change in valuation allowance
 
 
(6,039)
 
 
1,563
 
 
4,476
 
Income tax expense (benefit)
 
$
448,099
 
$
-
 
$
-
 
 
The Company’s deferred tax assets are as follows:
 
 
 
Year ended December 31,
 
 
 
2017
 
2016
 
Deferred tax asset:
 
 
 
 
 
 
 
Net operating loss carryforward
 
$
-
 
$
6,039
 
Total deferred tax asset
 
$
-
 
$
6,039
 
Valuation allowance
 
 
-
 
 
(6,039)
 
Deferred tax asset, net of current allowance
 
$
-
 
$
-
 
 
A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows:
 
 
 
Year ended December 31,
 
 
 
2017
 
2016
 
2015
 
Statutory rate
 
 
34.4
%
 
-31.0
%
 
-34.0
%
Other business tax credit
 
 
0.0
%
 
0.0
%
 
0.0
%
State income tax, net of federal tax benefit
 
 
0.0
%
 
-3.6
%
 
-3.6
%
Change in valuation allowance on deferred tax asset
 
 
-0.4
%
 
34.6
%
 
37.6
%
Total
 
 
34.0
%
 
0.0
%
 
0.0
%