MOTOR VEHICLE

12 Months Ended

Dec. 31, 2023

Motor Vehicle

MOTOR VEHICLE

6. MOTOR VEHICLE

In April 2023, the Company purchased a motor vehicle for approximately $143,231 (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 year ended December 31, 2023 was $18,143.

As of December 31, 2023 net book value of a motor vehicle was $124,568.