NOTE 4: PROPERTY, PLANT & EQUIPMENT

3 Months Ended

Jun. 30, 2012

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4: PROPERTY, PLANT & EQUIPMENT

Property and equipment are stated at cost.  Depreciation begins on the date an asset is placed in service using the straight-line method over the asset’s estimated useful life.

The useful lives of property, plant and equipment for purposes of computing depreciation are three to thirty-one and one-half years. The following is a summary of property, equipment, and accumulated depreciation at June 30, 2012 and September 30, 2011:

		June 30, 2012		September 30, 2011
General Use:
	Equipment	$	624,405	$	623,312
			624,405		623,312
Lakeview:
	Building		56,255		56,255
	Equipment		381,007		381,007
	Mill		1,539,282		1,539,282
			1,976,544		1,976,544
Warren:
	Building		379,960		379,960
	Equipment		275,741		275,742
			655,701		655,702
Total			3,256,650		3,255,558
Less:  Accumulated Depreciation			(1,802,351)		(1,675,106)
Property, Plant & Equipment, net		$	1,454,299	$	1,580,452

Depreciation expense was $127,245 for the nine-month period ended June 30, 2012 and $134,682 for the comparable period last year.

The Company evaluates the recoverability of property and equipment when events and circumstances indicate that such assets might be impaired.  The Company determines impairment annually by comparing the undiscounted future cash flows estimated to be generated by these assets to their respective carrying amounts.

Maintenance and repairs are expensed as incurred.  Replacements and betterments are capitalized.  The cost and related reserves of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in results of operations.