NOTE 8. INCOME TAXES
The Company is subject to United States federal and state income taxes at an approximate rate of 35%. The reconciliation of the provision for income taxes at the United States federal and state statutory rate compared to the Company’s income tax expense as reported is as follows:
April 30, 2017 $ |
April 30, 2016 $ |
||||||
| Net loss | 81,974 | 39,370 | |||||
| Income tax rate | 35% | 35% | |||||
| Expected income tax benefit | (28,691 | ) | (13,780 | ) | |||
| Valuation allowance change | 28,691 | 13,780 | |||||
| Provision for income taxes | — | — | |||||
The significant components of deferred income tax assets at April 30, 2017 and 2016, are as follows:
April 30, 2017 $ |
April 30, 2016 $ |
||||||
| Net operating loss carryforward | 70,902 | 42,211 | |||||
| Valuation allowance | (70,902 | ) | (42,211 | ) | |||
| Net deferred income tax asset | — | — | |||||
The Company has net operating loss carryforwards of approximately $202,577 available to offset taxable income in future years which expires beginning in fiscal 2033. The Company has recognized a valuation allowance for the deferred income tax asset since the Company cannot be assured that it is more likely than not that such benefit will be utilized in future years.