The components of income tax (benefit) expense for each of the years ended December 31, 2016 and 2015, respectively, are as follows:

 

		Year Ended			Year Ended
		December 31, 2016			December 31, 2015
Federal:
Current		$	17,036		$	-
Deferred			-			-
			17,036			-
State:
Current			-			-
Deferred			-			-
			-			-
Total		$	17,036		$	-

 

As of December 31, 2016, the Company has an aggregate net operating loss carryforward of approximately $675,000 to offset future taxable income which are subject to limitations for federal tax purposes. The amount and availability of any net operating loss carryforwards will be subject to the limitations set forth in the Internal Revenue Code. Such factors as the number of shares ultimately issued within a three year look-back period; whether there is a deemed more than 50 percent change in control; the applicable long-term tax exempt bond rate; continuity of historical business; and subsequent income of the Company all enter into the annual computation of allowable annual utilization of any net operating loss carryforward(s).

 

The Company's income tax expense (benefit) for each of the years ended December 31, 2016 and 2015, respectively, differed from the statutory federal rate of 34% as follows:

 

		Year Ended			Year Ended
		December 31,			December 31,
		2016			2015
Statutory rate applied to income before income taxes		$	27,419		$	(17,400)
Increase (decrease) in income taxes resulting from:
State income taxes			-			-
Change in valuation allowance			-			17,400
Utilization of net operating loss carryforward			(181)			-
Other			(10,202)			-
Income Tax Expense (Benefit)		$	17,036		$	-

 

Temporary differences, consisting primarily of the prospective usage of net operating loss carryforwards give rise to deferred tax assets and liabilities as of December 31, 2016 and 2015, respectively:

 

		December 31,			December 31,
		2016			2015
Deferred tax assets
Net operating loss carryforward		$	-		$	91,000
Other			-			-
Total deferred tax assets			-			91,000
Less valuation allowance			-			(91,000)
Total deferred tax asset, net of valuation allowance
Inventories			-			-
Other			(17,036)			-
Net Deferred Tax Asset (Liability)		$	(17,036)		$	-