Table:
|  | 2019 | 2018 |
| --- | --- | --- |
| Federal income tax benefit (expense) attributable to: |  |  |
| Current operations | $848,000 | $(48,000) |
| Acquisition costs | (143,000) | - |
| Change in fair value of contingent consideration | (133,000) | - |
| Other permanent items | 29,000 | (36,000) |
| Deferred Adjustment | (913,000) | - |
| Valuation allowance | 1,209,960 | 84,000 |
| Net provision for federal income tax | $897,960 | $- |
Paragraphs:
NOTE 15 – INCOME TAXES
As of December 31, 2019, the Company had net operating loss carry-forwards for federal income tax purposes of approximately $18.3 million, consisting of pre-2018 losses in the amount of approximately $14.3 million that expire from 2020 through 2037, and post-2017 losses in the amount of approximately $4 million that never expire. These net operating losses are available to offset future taxable income. The Company was formed in 2006 as a limited liability company and changed to a corporation in 2007. Activity prior to incorporation is not reflected in the Company’s corporate tax returns. In the future, the cumulative net operating loss carry-forward for income tax purposes may differ from the cumulative financial statement loss due to timing differences between book and tax reporting.
The provision for Federal income tax consists of the following for the years ended December 31, 2019 and 2018:
The provision for Federal income tax consists of the following for the years ended December 31, 2019 and 2018:
Question:
What is the percentage change in valuation allowance in 2019 compared to 2018?
Answer: (1209960 - 84000)/84000  = 1340.43