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Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant, and Equipment [Text Block]

3. Property, Plant and Equipment

Property, plant and equipment at December 31, 2011 and 2010, consisted of the following:

		2011			2010
Mill land	$	225,289
Mill building		430,118		$	128,566
Milling equipment		2,802,925			1,095,330
		3,458,332			1,223,896
Less accumulated depreciation		(80,385	)		(80,385	)
Total mill		3,377,947			1,143,511
Building and equipment at cost		771,419			479,720
Less accumulated depreciation		(441,308	)		(379,038	)
Total building and equipment		330,111			100,682
Land		259,409			79,137
Total	$	3,967,467		$	1,323,330

During the year 2011 $21,792 in interest was capitalized in conjunction with the mill expansion project. See note 7

For years ended December 31, 2011 and 2010, milling and other equipment include assets under capital lease amounting to $97,250 and $49,763, respectively. The leases are being amortized over the terms of the respective lease. Accumulated amortization at December 31, 2011 and 2010 was $8,721 and $33,740, respectively. One new lease was obtained in 2011 and was personally guaranteed by President Fred Brackebusch and Vice president Grant Brackebusch. At December 31, 2011, the estimated future minimum lease payments under capital leases were as follows:

Year ending December 31,
2012	$	38,242
2013		36,753
2014		27,566
Total		102,561
Less: Amounts representing interest costs		(14,032	)
Net present values		88,529
Less: Capital lease obligations-current portion		(30,153	)
Long-term capital lease obligations	$	58,376

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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