PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2012
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2012

 

 

2011

 

Permit of land use

 

$

445,747

 

 

$

442,978

 

Building

 

 

2,412,271

 

 

 

2,397,286

 

Plant, machinery and equipment

 

 

6,285,224

 

 

 

6,184,254

 

Motor vehicle

 

 

146,664

 

 

 

145,300

 

Office equipment

 

 

216,050

 

 

 

204,552

 

Construction in progress

 

 

361,999

 

 

 

351,571

 

Total

 

 

9,867,955

 

 

 

9,725,941

 

Less: accumulated depreciation

 

 

(4,049,480

)

 

 

(3,391,124

)

Property and Equipment, net

 

$

5,818,475

 

 

$

6,334,817

 

 

Construction in progress consists of machinery and construction supplies that have been paid for, but are not yet completed and placed into production.  Once the machinery is working or the facility is in use, it is moved into plant, machinery and equipment and depreciated.  Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

 

Asset

 

 Life - years

Permit of land use

 

40 - 70

Building

 

20 - 35

Plant, machinery and equipment

 

10

Motor vehicle

 

5 - 10

Office equipment

 

3-5

 

For the nine months ended September 30, 2012 and 2011, depreciation expense was $638,219 and $636,179, respectively.