8. Long-lived Assets, net

2022

2021

Cost

Accumulated

Net book value

Net book value

depreciation

Land

3,163,941

3,380,356

Property under construction

3,548,648

1,874,892

Composting buildings

2,238,614

702,958

1,535,656

1,784,200

Gore cover system

1,039,543

525,237

514,306

660,549

Driveway and paving

342,202

144,866

197,336

240,083

Machinery and equipment

566,959

538,923

28,036

64,282

Equipment under capital lease

287,679

248,105

39,574

134,487

Vacuum trailer

5,537

1,479

Signage

6,102

3,655

2,447

3,918

Automotive equipment

162,543

85,335

77,208

134,587

11,361,768

2,254,616

9,107,152

8,278,833

In the prior year, on August 17, 2021, the Company acquired the Hamilton Property assets, consisting of land, a vacant building and ECAs. The total purchase price including costs of acquisition of $175,615 (C$221,680) totaled $3,590,773 (C$4,532,633). The costs of acquisition, were settled through cash payments of $119,094 (C$150,333) and the issuance of 200,000 common shares valued based on the trading price on the issuance date at $56,521 (C$71,347) to a consultant who assisted on the closing of the transaction. The issuance of common shares is also noted under capital stock, note 15, common shares issued for professional services. The purchase of the Hamilton Property was funded by cash of $396,364 (C$500,333), the issuance of 300,000 common shares to the vendor on closing, having a value based on the trading price on the issuance date of $84,781 (C$107,020), the issuance noted above of 200,000 common shares to a consultant who assisted on the closing of the transaction disclosed as part of common shares issued for professional services, under capital stock, note 15, a vendor take-back 1st mortgage of $1,584,400 (C$2,000,000) and a portion of the increased existing 1st mortgage of $1,468,686 (C$1,853,933), disclosed under note 12(d), long-term debt. The cost of the purchase price was allocated ratably over the estimated fair value of each long-lived asset acquired, land of $1,724,979 (C$2,177,442), included above under land and building $1,556,002 (C$1,964,141), described above as property under construction.

Also included under property under construction, are construction costs incurred subsequent to the acquisition in the amount of $2,076,732 (C$2,812,857).

During the year ended December 31, 2022, depreciation is disclosed in cost of sales in the amount of $452,402 (C$588,146) (2021-$507,070; C$635,426) and in office and administration in the amount of $1,271 (C$1,652) (2021-$2,951; C$3,698) in the consolidated statements of operations and comprehensive loss.