INCOME TAXES

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 5 INCOME TAXES

Management believes the income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2017, 2016, and 2015 are subject to examination by the IRS taxing authority.

The sources of deferred income tax assets and liability at June 30, 2018 and 2017 are as follows:

	2018			2017
Deferred Income Tax Assets:
Net Operating Loss Carryover	$	66,580		$	83,694
Valuation Allowance on Net Operating Loss		(29,460	)		-
Trade Receivables		3,473			5,251
Deferred Income		2,273			3,837
Inventories		540			952
Contribution Carryover		830			572
Total Deferred Income Tax Assets		44,236			94,306
Deferred Income Tax Liability:
Property and Equipment		(44,236	)		(67,143	)
NET DEFERRED INCOME TAX ASSET	$	-		$	27,163

The net deferred income tax asset is presented in the accompanying June 30, 2018 and 2017 consolidated balance sheets as follows:

	2018		2017
Deferred Income Tax Asset	$	-	$	27,163

The benefit for income taxes for the years ended June 30, 2018 and 2017consists of the following:

	2018			2017
Current Income Tax	$	-		$	(35	)
Change in Deferred Taxes Due to Enacted Changes in Tax Law		(19,369	)		-
Deferred Income Tax Credit		(6,653	)		(110,076	)
Total	$	(26,022	)	$	(110,111	)

The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax loss for the years ended June 30, 2018 and 2017 due to the following:

	2018			2017
Computed at Federal Statutory Rates	$	(55,176	)	$	(98,278	)
Increase (Decrease) in Income Taxes Resulting from:
Non-Deductible Expenses		3,288			111
Change in Deferred Taxes Due to Enacted Changes in Tax Law		(19,369	)		-
Adjustment of Deferred Tax Balances		15,857			-
Changes in Judgment on Realizability of Deferred Tax Assets		24,207			-
Other		-			(36	)
State Income Taxes		5,171			(11,908	)
Total	$	(26,022	)	$	(110,111	)

On December 22, 2017, the President signed into law The Tax Cuts and Jobs Act (the Act), which enacts significant changes to U.S. income tax and related laws. Among other things, the Act reduces the top U.S. corporate income tax rate from 35.0% to 21.0% effective January 1, 2018, and makes changes to certain other business-related exclusions, deductions, and credits. Because a change in tax law is accounted for in the period of enactment, the effect of the Act was recorded in the Company’s fiscal second quarter ending December 31, 2017 which caused a net provision adjustment to deferred income taxes of $19,369.

The Company has available at June 30, 2018, $256,695 of unused operating loss that may be carried forward and applied against future taxable income. Of the net operating loss carryforward, $16,460 expires on June 30, 2038, the remaining balance does not expire.