PROPERTY AND EQUIPMENT
 6 Months Ended
Jun. 30, 2016
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

  

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

Permit of land use

 

$

423,984

 

 

$

433,956

 

Building

 

 

10,314,651

 

 

 

10,557,234

 

Plant, machinery and equipment

 

 

26,737,662

 

 

 

27,325,440

 

Motor vehicle

 

 

260,386

 

 

 

242,860

 

Office equipment

 

 

252,710

 

 

 

256,679

 

Total

 

 

37,989,393

 

 

 

38,816,169

 

Less: accumulated depreciation

 

 

(10,774,784

)

 

 

(9,422,912

)

Property and Equipment, net

 

$

27,214,609

 

 

$

29,393,257

 

 

 

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 - 49

Plant, machinery and equipment

 

5 - 10

Motor vehicle

 

5 - 10

Office equipment

 

3-5

 

 

Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. For the three months ended June 30, 2016 and 2015, depreciation expense was $921,983 and $857,752, respectively.  For the six months ended June 30, 2016 and 2015, depreciation expense was $1,594,307 and $1,712,237, respectively.