Property and Equipment

12 Months Ended

Dec. 31, 2012

Note 6. Property and Equipment

We record our property and equipment at cost and provide for depreciation using the straight-line method for financial reporting purposes and accelerated methods for income tax reporting purposes. Office equipment is depreciated over a five year period. The detail of property and equipment at December 31, 2012 and December 31, 2011is as follows:

	December 31, 2012			December 31, 2011
Computer equipment	$	20,391		$	20,391
Less: accumulated depreciation		(9,090	)		(5,012	)
	$	11,301		$	15,379

Depreciation expense was $4,078 and $15,546 for the years ended December 31, 2012 and 2011, respectively. During the year ended December 31, 2011, a vehicle was transferred and the obligation assumed by one of the employees of the Company reflecting a loss shown on the statement of income and on the statement of cash flows for the year ended December 31, 2011 of $9,418.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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