PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2014

Property and equipment consisted of the following:

	December 31,			December 31,
	2014			2013
Permit of land use	$	458,853		$	460,964
Building		11,279,704			2,494,623
Plant, machinery and equipment		28,358,694			6,671,620
Motor vehicle		150,976			151,670
Office equipment		268,521			229,210
Construction in progress		5,848			25,497,600
Total		40,522,596			35,505,687
Less: accumulated depreciation		(6,640,718	)		(5,264,350	)
Property and Equipment, net	$	33,881,878		$	30,241,337

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

	For the Year
	Ended December 31,
	2014		2013
Total interest cost incurred	$	1,244,346	$	583,400
Interest cost capitalized		458,542		234,704
Interest expense	$	785,804	$	348,696

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 - 49
Plant, machinery and equipment		5 - 10
Motor vehicle		5 - 10
Office equipment		3-5