PROPERTY AND EQUIPMENT (TABLES)

3 Months Ended

Mar. 31, 2015

PROPERTY AND EQUIPMENT (Tables)

Property and equipment consists

Property and equipment consisted of the following:

	March 31,			December 31,
	2015			2014
Permit of land use	$	461,063		$	458,853
Building		11,333,987			11,279,704
Plant, machinery and equipment		28,541,198			28,358,694
Motor vehicle		151,702			150,976
Office equipment		271,096			268,521
Construction in progress		5,876			5,848
Total		40,764,922			40,522,596
Less: accumulated depreciation		(7,530,897	)		(6,640,718	)
Property and Equipment, net	$	33,234,025		$	33,881,878

A reconciliation of total interest cost incurred to interest expense

A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows: 

	For the Three Months
	Ended March 31,
	2015		2014
Total interest cost incurred	$	313,775	$	276,215
Interest cost capitalized		-		219,768
Interest expense	$	313,775	$	56,447

Useful lives of the assets

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	10
Motor vehicle	5 - 10
Office equipment	3-5