Fixed Assets

3 Months Ended

Oct. 31, 2021

Fixed Assets

Note - 4 Fixed Assets

4. Fixed Assets

Fixed assets are recorded at cost reduced by accumulated depreciation. Depreciation expense is recognized over the assets’ estimated useful lives using the straight-line method. Estimated useful lives are periodically reviewed and, when appropriate, changes are made prospectively. When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.

Fixed assets consist of the following:

	Useful Life	Balance at July 31, 2021		Additions		Accumulated Depreciation			Balance at October 31, 2021
Production equipment	5 years	$	854,899	$	35,023	$	(53,848	)	$	836,785
Furniture and office equipment	5 years		4,859		-		(408	)		4,451
Buildings and improvements	15 years		450,206		-		(8,183	)		442,023
Land			4,212,362		-		-			4,212,362
		$	5,522,326	$	35,023	$	(62,439	)	$	5,494,912

Fixed asset costs are being depreciated using the straight-line method based on the useful life of the asset. Depreciation expenses was $62,439 and $30,177 for the three months ended October 31, 2021, and 2020, respectively.