PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2017

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

	March 31,			December 31,
	2017			2016
Permit of land use	$	408,775		$	405,645
Building		9,492,387			9,419,700
Plant, machinery and equipment		26,379,439			26,151,029
Motor vehicle		312,167			309,777
Office equipment		184,128			182,718
Total		36,776,896			36,468,869
Less: accumulated depreciation		(12,354,523	)		(11,501,421	)
Property and Equipment, net	$	24,422,373		$	24,967,448

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 March 31, 2017 and 2016, depreciation expense was $764,614 and $790,254, respectively.