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5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET
 6 Months Ended
Jun. 30, 2017
Leases [Abstract]  
5. PROPERTY, PLANT AND EQUIPMENT UNDER CAPITAL LEASES, NET

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

 

    June 30,
2017		   December 31,
2016
At cost:                
Buildings   $ 121,470     $ 118,623  
Plant and machinery     2,283,296       2,229,775  
Total     2,404,766       2,348,398  
Less: Accumulated depreciation and amortization     (1,989,789 )     (1,794,141 )
Net book value   $ 414,977     $ 554,257  

 

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 three-month period ended June 30, 2017 and 2016, depreciation and amortization expense totaled $75,413 and $83,288, respectively, which was recorded as cost of net revenue. During the six-month period ended June 30, 2017 and 2016, depreciation and amortization expense totaled $150,470 and $166,608, respectively, which was recorded as cost of net revenue.