Property, Plant and Equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

NOTE 3 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	September 30,			December 31,
	2017			2016
Permit of land use	$	430,388		$	405,645
Building		9,994,281			9,419,700
Plant, machinery and equipment		27,814,173			26,151,029
Motor vehicle		328,673			309,777
Office equipment		195,886			182,718
Total		38,763,401			36,468,869
Less: accumulated depreciation		(14,610,314	)		(11,501,421	)
Property, Plant and Equipment, net	$	24,153,087		$	24,967,448

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

Depreciation relating to office equipment was included in general and administrative expenses, while all other depreciation was included in cost of revenue. For the three months ended June 30, 2017 and 2016, depreciation expense was $779,856 and $789,150, respectively. For the six months ended June 30, 2017 and 2016, depreciation expense was $2,314,928 and $ 2,383,457, respectively.