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v2.4.0.6
Note 8. Income Taxes
12 Months Ended
Apr. 30, 2012
Income Tax Disclosure [Abstract]  
Income Taxes

Note 8. Income Taxes


Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. At April 30, 2012, the Company had a net operating loss carryforward of $259,309, which expires $18,050 in 2026, $21,490 in 2027, $25,510 in 2028, $41,358 in 2029, $58,513 in 2030, $40,296 in 2031 and $54,092 in 2032. Pursuant to Accounting Standards Codification (“ASC”) 740, “Income Taxes”, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of the net operating loss carryforward have not been recognized in these financial statements because the Company has not determined it to be more likely than not that it will utilize the net operating loss carryforward in future years. At April 30, 2012, the valuation allowance established against the deferred tax asset is $88,165.

 

The components of the net deferred tax asset and the amount of the valuation allowance are scheduled below:

    April 30, 2012   April 30, 2011
Net Losses From Inception $                   954,434  $                891,342
Less donated rent and services                     (55,125)                   (46,125)
Less amortization and impairment of investment in Beijing                 (640,000)                 (640,000)
Net operating loss carryforward for tax purposes                     259,309                  205,217
Statutory Tax Rate   34%   34%
Deferred Tax Asset at 34%                       88,165                    69,774
Valuation Allowance                     (88,165)                   (69,774)
Net Deferred Tax Asset $                              -  $                            -

 

Current United States income tax laws limit the amount of loss available to offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.