Deferred Tax Liability, Net

6 Months Ended

Jun. 30, 2017

Deferred Tax Liability, Net [Abstract]

11. DEFERRED TAX LIABILITY, NET

Deferred tax asset resulted from accrued employee social insurance that can be deducted for tax purposes in the future, and the difference between tax and accounting basis of cost of fixed assets which was capitalized for tax purposes and expensed as part of cost of systems in accordance with US GAAP. Deferred tax liability arose from the difference between tax and accounting basis of net investment in sales-type leases.

As of June 30, 2017 and December 31, 2016, deferred tax liability consisted of the following:

	2017			2016
Deferred tax asset — current (accrual of employee social insurance)	$	172,012		$	167,980
Deferred tax liability — current (net investment in sales-type leases)		(1,746,046	)		(1,586,058	)
Deferred tax liability, net of current deferred tax asset	$	(1,574,034	)	$	(1,418,078	)

Deferred tax asset — noncurrent (depreciation of fixed assets)	$	17,496,549		$	17,943,843
Deferred tax liability — noncurrent (net investment in sales-type leases)		(25,156,102	)		(25,426,744	)
Deferred tax liability, net of noncurrent deferred tax asset	$	(7,659,553	)	$	(7,482,901	)

Total Deferred tax liability, noncurrent per ASU 2015-17	$	9,233,587		$	8,900,979