NOTE 5. INCOME TAXES
The components of the Company’s deferred tax asset as of December 31, 2016 and 2015 are as follows:
| 2016 | 2015 | |||||||
| Net operating loss carry forward | $ | 233,190 | $ | 202,377 | ||||
| Valuation allowance | (233,190 | ) | (202,377 | ) | ||||
| Net deferred tax asset | $ | - | $ | - | ||||
A reconciliation of income taxes computed at the statutory rate to the income tax amount recorded is as follows:
| 2016 | 2015 | |||||||
| Tax at statutory rate (35%) | $ | (30,813 | ) | $ | (29,112 | ) | ||
| Increase in valuation allowance | 30,813 | 29,112 | ||||||
| Net deferred tax asset | $ | - | $ | - | ||||
As of December 31, 2016 and 2015, we have provided a 100% valuation allowance for all deferred tax assets as management has detemined that it is more-likely-than-not that we will not realize the use of our net operating loss carryforwards.
Upon adoption of ASC 740 as of January 1, 2008, the Company had no gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. At December 31, 2016, the amount of gross unrecognized tax benefits before valuation allowances and the amount that would favorably affect the effective income tax rate in future periods after valuation allowances were $0. The Company has not accrued any additional interest or penalties as a result of the adoption of ASC 740.
The Company files income tax returns in the United States federal jurisdiction and certain states in the United States. No tax returns are currently under examination by any tax authorities.