NOTE 4 - Development Cost of Acer Truncatum Bunge Planting, Net

9 Months Ended

Dec. 31, 2018

Notes

NOTE 4 - Development Cost of Acer Truncatum Bunge Planting, Net

NOTE 4 - DEVELOPMENT COST OF ACER TRUNCATUM BUNGE PLANTING, NET

The components of development cost of acer truncatum bunge planting were as follows:

	December 31,		March 31,
	2018		2018
Development cost of acer truncatum bunge planting	$	45,515,711	$	48,984,881
Less: Accumulated amortization		(73,629)		-
Total Development cost of acer truncatum bunge planting, net	$	45,442,082	$	48,984,881

Development costs of acer truncatum bunge consist primarily of the purchase costs of the acer truncatum bunge trees, acer truncatum bunge planting fee, and the expenditures incurred for land leveling, irrigation, and fertilization. The costs are capitalized until acer truncatum bunge becomes commercially productive, at which time amortization is recognized using the straight-line method over the estimated economic useful life of the acer truncatum bunge, which is estimated to be 30 years. Since November 2018, approximately 4% of acer truncatum bunge trees became commercially productive, for which, an amortization expense of $75,435 was recognized.