PROPERTY AND EQUIPMENT (TABLES)

9 Months Ended

Sep. 30, 2015

PROPERTY AND EQUIPMENT (Tables)

Property and equipment consists

Property and equipment consisted of the following:

	September 30,			December 31,
	2015			2014
Permit of land use	$	443,306		$	458,853
Building		10,897,489			11,279,704
Plant, machinery and equipment		27,446,047			28,358,694
Motor vehicle		248,092			150,976
Office equipment		261,947			268,521
Construction in progress		19,747			5,848
Total		39,316,628			40,522,596
Less: accumulated depreciation		(8,862,709	)		(6,640,718	)
Property and Equipment, net	$	30,453,919		$	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				For the Nine Months
	Ended September 30,				Ended September 30,
	2015		2014		2015		2014
Total interest cost incurred	$	279,113	$	330,995	$	915,310	$	952,836
Interest cost capitalized		-		5,751		-		457,782
Interest expense	$	279,113	$	325,244	$	915,310	$	495,054

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	5 - 10
Motor vehicle	5 - 10
Office equipment	3-5

For the three and nine months ended September 30, 2015 and 2014, depreciation expense was $911,515, $321,020, $2,523,752 and $724,509, respectively.