Quarterly report pursuant to Section 13 or 15(d)

PROVISION FOR INCOME TAXES

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PROVISION FOR INCOME TAXES
9 Months Ended
Jul. 31, 2013
Income Tax Disclosure [Abstract]  
PROVISION FOR INCOME TAXES

NOTE 8 - PROVISION FOR INCOME TAXES

 

The Company follows ASC 740, Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

 

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 34% to the net income before provision for income taxes for the following reasons:

 

 

July 31, 2013

October 31, 2012

Income tax expense at statutory rate

$

588

$

1,623

Valuation allowance

(246)

(1,377)

Income tax expense per books

$

342

$

246

 

The net operating loss of $4,050 begins expiring in 2031.