FEDERAL INCOME TAXES
|12 Months Ended|
Dec. 31, 2011
|FEDERAL INCOME TAXES|
NOTE 14 - FEDERAL INCOME TAXES
Federal income taxes consisted of the following components:
The following is a reconciliation of income tax expense and the amount computed by applying the effective federal income tax rate of 35% to income before income taxes:
Year-end deferred tax assets and liabilities were due to the following factors:
At year-end 2011, the Company had net operating loss carry forwards from its 2007 acquisition of approximately $9,799 which expire beginning in 2022 and have an annual limitation by IRC section 382. No valuation allowance has been established as management believes it will generate sufficient income in future years to realize the net operating loss benefits before expiration.
The Company had no unrecognized tax benefits as of January 1, 2011 and 2010 and did not recognize any increase in unrecognized benefits during 2011 or 2010 relative to any tax positions taken in 2011 and 2010. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in its income taxes accounts; no such accruals exist as of December 31, 2011 and 2010. The Company and its corporate subsidiary file a consolidated U.S. federal income tax return, which is subject to examination for all years after 2007.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef