PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2016
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

 

Property and equipment consisted of the following:

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

Permit of land use

 

$

422,330

 

 

$

433,956

 

Building

 

 

10,274,394

 

 

 

10,557,234

 

Plant, machinery and equipment

 

 

26,651,565

 

 

 

27,325,440

 

Motor vehicle

 

 

259,369

 

 

 

242,860

 

Office equipment

 

 

253,766

 

 

 

256,679

 

Total

 

 

37,861,424

 

 

 

38,816,169

 

Less: accumulated depreciation

 

 

(11,521,705

)

 

 

(9,422,912

)

Property and Equipment, net

 

$

26,339,719

 

 

$

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 September 30, 2016 and 2015, depreciation expense was $789,150 and $911,515, respectively. For the nine months ended September 30, 2016 and 2015, depreciation expense was $2,383,457 and $2,523,752, respectively.