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PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2013

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 4 - PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

		March 31,		December 31,
		2013		2012
Permit of land use		$ 449,474		$ 447,013
Building		2,432,442		2,419,125
Plant, machinery and equipment		6,418,768		6,381,209
Motor vehicle		147,890		147,080
Office equipment		223,947		222,273
Construction in progress		4,127,396		3,688,567
Total		13,799,917		13,305,267
Less: accumulated depreciation		(4,511,658)		(4,273,373)
Property and Equipment, net		$ 9,288,259		$ 9,031,894

Construction in progress consists of machinery and construction supplies that have been paid for, but are not yet completed and placed into production. Once the machinery is working or the facility is in use, it is moved into plant, machinery and equipment and depreciated. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows:

Asset		Life - years
Permit of land use		40 - 70
Building		20 - 35
Plant, machinery and equipment		10
Motor vehicle		5 - 10
Office equipment		3-5

For the three months ended March 31, 2013 and 2012, depreciation expense was $214,406 and $212,424, respectively.

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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