| 6. | Income Taxes |
The component of the Company’s deferred tax assets as of November 30, 2016 and 2015 are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized.
| 2017 | 2016 | |||||||
| Tax loss carry forward | $ | 130,785 | $ | 113,142 | ||||
| Deferred tax asset | $ | 27,500 | $ | 39,600 | ||||
| Valuation allowance | (27,500 | ) | (39,600 | ) | ||||
| Net deferred tax asset | $ | - | $ | - | ||||
A reconciliation of income taxes computed at the 21% (2016 - 35%) statutory rate to the income tax recorded is as follows:
| 2017 | 2016 | |||||||
| Net loss for the year | $ | 17,643 | $ | 15,738 | ||||
| Income taxes at the statutory rate | $ | 3,700 | $ | 5,508 | ||||
| Valuation allowance | (3,700 | ) | (5,508 | ) | ||||
| Net deferred tax asset | $ | - | $ | - | ||||
The Company did not pay any income taxes during the periods ended November 30, 2017 and 2016, and since inception.
The net federal operating loss carry forward will expire between 2031 and 2038. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.