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19. Goodwill
12 Months Ended
Dec. 31, 2012
Goodwill Disclosure [Text Block]

19. GOODWILL


Goodwill represented the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired from the Shanxi Feihe minority interest acquisition in 2006 and from the Longjiang Feihe acquisition in 2009. Such amounts are not tax deductible.


The Company has performed step 1 and step 2 of the goodwill impairment test relating to goodwill arising from its acquisition of Shanxi Feihe’s minority interest and Longjiang Feihe and determined that the carrying value of the reporting unit exceeded the fair value of the reporting unit. The Company recorded a goodwill impairment loss for the continuing operations of $nil, $555,387 and $1,437,005 for the years ended December 31, 2012, 2011 and 2010, respectively. All goodwill was fully impaired as of December 31, 2011.