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6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET
 12 Months Ended
Dec. 31, 2016
Leases [Abstract]  
6. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET

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

 

    As of December 31,  
    2016     2015  
At cost:            
Buildings   $ 118,623     $ 126,729  
Plant and machinery     2,229,775       2,382,139  
Total     2,348,398       2,508,868  
Less: accumulated depreciation and amortization     (1,794,141 )     (1,581,650 )
Net book value   $ 554,257     $ 927,218  

 

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, 2016, depreciation and amortization expense totaled $327,738, which was recorded as cost of sales.

 

During the year ended December 31, 2015, depreciation and amortization expense totaled $349,579, which was recorded as cost of sales.