PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2013

Property and equipment consisted of the following:

	December 31,			December 31,
	2013			2012
Permit of land use	$	460,964		$	447,013
Building		2,494,623			2,419,125
Plant, machinery and equipment		6,671,620			6,381,209
Motor vehicle		151,670			147,080
Office equipment		229,210			222,273
Construction in progress		25,497,600			3,688,567
Total		35,505,687			13,305,267
Less: accumulated depreciation		(5,264,350	)		(4,273,373	)
Property and Equipment, net	$	30,241,337		$	9,031,894

A reconciliation of total interest cost incurred to interest expense

A reconciliation of total interest cost incurred to interest expense as recognized in the consolidated statement of operations is as follows:

	For the Years
	Ended December 31,
	2013		2012
Total interest cost incurred	$	583,400	$	308,375
Interest cost capitalized		234,704		-
Interest expense	$	348,696	$	308,375

Useful lives of the assets

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

- Definition

Tabular disclosure of the useful life and salvage value of 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.

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