Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

 v2.3.0.11
Income Taxes
 4 Months Ended
Jun. 30, 2011
Income Taxes
Note 9. Income Taxes

The Company has the following deferred tax assets and liabilities at June 30, 2011:

Non-current assets:
  
 
  
Net operating loss carryforwards
   $ 8,551  
Amortizable start-up costs
     60,454  
      69,005  
Valuation allowance
     (69,005 )
    $ —  

The Company established a valuation allowance of $69,005 as of June 30, 2011, which fully offsets the deferred tax asset of $69,005.  The deferred tax asset results from applying an effective combined federal and state tax rate of 40% to start-up costs of approximately $151,000 and net operating losses of approximately $21,000.   Effective tax rates differ from statutory rates due to timing differences in the deductability of expenses and the establishment of the valuation allowance.