MOTOR VEHICLE

9 Months Ended

Sep. 30, 2023

Motor Vehicle

MOTOR VEHICLE

6. MOTOR VEHICLE

In April 2023, the Company purchased a motor vehicle for approximately $144,146 (RMB1,012,301). A motor vehicle is recorded at cost less accumulated depreciation. Gains or losses on disposals are reflected as gain or loss in the period of disposal. All ordinary repair and maintenance costs are expensed as incurred.

Depreciation of a motor vehicle is computed using the straight-line method over the estimated useful lives of 5 years. Depreciation expense recorded for the nine months ended September 31, 2023 and 2022 was $11,412 and $ nil, respectively.

As of September 30, 2023 and December 31, 2022, net book value of a motor vehicle was $128,123 and nil , respectively.