Note 15. Income taxes
Following is a summary of the components giving rise to the income tax benefit for the years ended December 31:
The benefit for income taxes consists of the following:
| 2016 | 2015 | |||||||
| Currently payable | ||||||||
| Federal | $ | - | $ | - | ||||
| State | - | - | ||||||
| Total currently payable | $ | - | $ | - | ||||
| Deferred | ||||||||
| Federal | $ | (85,162 | ) | $ | (434 | ) | ||
| State | $ | (- | ) | $ | (- | ) | ||
| Total deferred | $ | (85,162 | ) | $ | (434 | ) | ||
| Less: increase in valuation allowance | 85,162 | 434 | ||||||
| Net deferred | - | - | ||||||
| Total income taxes | $ | - | $ | - | ||||
The differences between the United States statutory federal income tax rate and the effective income tax rate in the accompanying consolidated statements of operations are as follows:
| 2016 | 2015 | |||||||
| Statutory United States Federal income tax rate | 35.0 | % | 35.0 | % | ||||
| Change in Fair value of derivative liability | 4.2 | % | - | |||||
| Impairment of Acquisition | (28.4 | )% | - | |||||
| Non-deductible interest | (7.3 | )% | - | |||||
| Change in valuation allowance | (3.5 | )% | (35.0 | )% | ||||
| Effective tax rate | 0.0 | % | 0.0 | % | ||||