8. INCOME TAX
The Company’s net deferred tax liabilities are as follows:
| December 31, 2017 | ||||
Deferred tax asset (liability) | ||||
| Net operating loss carryover | 29,123 | |||
| Unrealized gains on marketable securities | $ | (118,532 | ) | |
| Deferred tax liability | $ | (89,409 | ) | |
The income tax provision consists of the following:
For the period from April 26, 2017 (inception) through December 31, 2017 | ||||
| Federal | ||||
| Current | $ | — | ||
| Deferred | 89,409 | |||
| State | ||||
| Current | $ | — | ||
| Deferred | — | |||
| Change in valuation allowance | — | |||
| Income tax provision | $ | 89,409 | ||
A reconciliation of the federal income tax rate to the Company’s effective tax rate at December 31, 2017 is as follows:
| Statutory federal income tax rate | 34.0 | % | ||
| State taxes, net of federal tax benefit | 0.0 | % | ||
| Deferred tax rate change | (13.0 | )% | ||
| Income tax provision (benefit) | 21.0 | % |
The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions and is subject to examination by the various taxing authorities. The Company considers New York to be a significant state tax jurisdiction.