FINANCE LEASE RIGHT-OF-USE ASSETS

12 Months Ended

Dec. 31, 2021

Finance Lease Right-of-use Assets

FINANCE LEASE RIGHT-OF-USE ASSETS

NOTE 5 – FINANCE LEASE RIGHT-OF-USE ASSETS

Property, plant and equipment under finance leases, net consist of the following:

	December 31, 2021			December 31, 2020
At cost:
Buildings	$	129,074		$	126,120
Plant and machinery		2,361,228			2,307,184
Total		2,490,302			2,433,304
Less: Accumulated depreciation and amortization		(2,305,478	)		(2,247,032	)
Net book value	$	184,824		$	186,272

The above buildings erected on parcels of land located in Shouguang, PRC, are collectively owned by local townships.  The Company has not been able to obtain property ownership certificates over these buildings as the Company could not obtain land use rights certificates on the underlying parcels of land.

During the year ended December 31, 2021, depreciation and amortization expense totaled $5,743, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown.

During the year ended December 31, 2020, depreciation and amortization expense totaled $5,375, respectively, which was recorded in direct labor and factory overheads incurred during plant shutdown.