LAND USE RIGHT

9 Months Ended

Sep. 30, 2014

LAND USE RIGHT [Text Block]

7. LAND USE RIGHT

In October2010, Great Shengda paid US$12,180,000 (RMB75,000,000) to Shengda Group Jiangsu Shuangdeng Paper Industrial Co., Ltd. (“Shuangdeng Paper”), a related party of the Group, for the acquisition of the land use right, which is located in Yancheng city, Jiangsu province. The land use right, with 166,533 square meters in area, has a term of 50 years and will expire in December 2058. It was purchased for construction of paper manufacturing plants to expand the Group's business. As of September 30, 2014, the Group recorded amortization expense of US$198,594 and US$196,153 for nine months ended September 30, 2014 and 2013, respectively. US$66,686 and US$65,823 for three months ended September 30, 2014 and 2013, respectively. However, the certificate of land use right is still awaiting the local government’s authorization.

		September 30,			December 31,
		2014			2013
		(Unaudited)
Land use right	$	12,194,163		$	12,277,500
Less: accumulated depreciation		(484,855	)		(288,621	)
	$	11,709,308		$	11,988,879

The future amortization is as follows:

Year		Amount
2014Q4	$	66,116
2015		264,467
2016		264,467
2017		264,467
2018		264,467
2019 and thereafter		10,585,324
Total	$	11,709,308