Note E - Income Taxes

12 Months Ended

Dec. 31, 2016

Notes

Note E - Income Taxes

NOTE E — INCOME TAXES

The Company uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes.

The Company has historically incurred losses from operations and therefore had no tax liability. The net deferred asset generated by the loss carry-forward has been fully reserved. The cumulative net operating loss carry-forward is approximately $2,913,569 and $2,863,509 for 2016 and 2015, respectively and will begin expiring in 2023.

Deferred tax assets consist of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realizability. Deferred tax assets consist of the following:

	December 31, 2016	December 31, 2015
Net operating loss carry-forwards	$   990,613	$   973,593
Valuation allowance	(990,613)	(973,593)
	$               -	$               -