Income Taxes

12 Months Ended

Feb. 28, 2013

NOTE 5 – INCOME TAXES

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

The income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates of 39% to pretax income from continuing operations for the periods ended February 28, 2013 and February 28, 2012 due to the following:

	2013		2012
Estimated tax benefit	$	6,306	$	2,764
Valuation allowance		(6,306)		(2,764)
Net deferred tax asset	$	-	$	-

At February 28, 2013, the Company had net operating loss carry- forwards of approximately $16,168 that may be offset against future taxable income through 2025. No tax benefit has been reported in the February 28, 2013 or February 28, 2012 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

- Definition

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.

+ References+ Details

DE Acquisition 4, Inc. 10-K