Blessing Ranch Inc.

PART X, LINE 2:

“Blessing ranch, inc. Is a nonprofit organization that is exempt from income taxes under section 501(c)(3) of the internal revenue code; therefore, no provision for income tax liability or expense has been made in these financial statements. The ranch has also been classified as an entity that is not a private foundation within the meaning of section 509(a) and qualifies for deductible contributions as provided in section 170(b)(1)(a)(vi). Blessing ranch, inc. Has adopted the provisions of fasb asc 740, income taxes. This codification prescribes a measurement attribute for recognition in the financial statements for tax positions taken or expected to be taken in a tax return. The interpretation applies to non-profit entities such as blessing ranch, inc. The requirement is to disclose tax positions that may likely be challenged by taxing authorities upon examination and reflect these positions monetarily in the financial statements. As stated above, blessing ranch, inc. Generally does not have a tax liability. Management has evaluated the interpretations and considers the financial effect of tax positions taken by blessing ranch, inc. To be minimal. Although depreciation and other estimates could be subject to challenge by taxing authorities, they are considered positions that have substantial authority in u.s. Generally accepted accounting principles and the internal revenue code. The ranch's federal form 990 return of organization exempt from income tax is generally open to examination for three years after it is filed. The years open to examination are 2014 through 2016.”