NOTE 5 - PROPERTY, PLANT, AND EQUIPMENT

Property, Plant and Equipment consisted of the following:


Category	January 2, 2016			December 27, 2014

Land and improvements	$	335,744		$	423,244
Buildings		1,684,096			2,251,264
Machinery and equipment		1,314,336			1,291,703
Furniture and fixtures		203,262			192,166

		3,537,438			4,158,377
Accumulated depreciation		(1,701,607	)		(1,850,882	)

Total Property, Plant, and Equipment	$	1,835,831		$	2,307,495

Depreciation expense totaled $218,198 and $172,607 for the years ended January 2, 2016 and December 27, 2014, respectively.

On December 22, 2015, Deer Valley sold, in a Bargain Sale Exchange, its idle manufacturing plant located in Sulligent, Alabama, and the surrounding thirteen (13) acres (the “Sulligent Property”). Deer Valley sold the Sulligent Property to The Industrial Development Board of the Town of Sulligent Inc., a political subdivision of the State of Alabama and an IRS 561 approved organization (the “Buyer”), for a combined purchase price of One Million One Hundred Fifty Thousand and No/100 Dollars ($1,150,000), comprised of (i) a cash payment by Buyer to Deer Valley of Three Hundred Fifty Thousand and No/100 Dollars ($350,000), and (ii) a charitable contribution made by Deer Valley to Buyer of Eight Hundred Thousand and No/100 Dollars ($800,000). The charitable contribution equaled the difference between the appraised value of the Sulligent Property, as determined by an independent appraiser, and the cash portion of the purchase price paid to Deer Valley by Buyer. The Internal Revenue Code (IRC) 170 Exchange, also known as Bargain Sale, is a transaction which allows a property owner donate its property and receive a “charitable contribution” income tax deduction.