7. INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consisted solely of land use rights. All land in the PRC is government-owned and cannot be sold to any individual or company. However, the government grants the user a “land use right” to use the land. The Company acquired land use rights during 2006 for $0.75 million (RMB 5 million). The Company has the right to use the land for 20 years and is amortizing such rights on a straight-line basis for 20 years.

Intangible assets consisted of the following at September 30, 2013 and December 31, 2012:

	2013			2012
Land use rights	$	808,460		$	790,774
Less: Accumulated amortization		(266,118	)		(230,642	)
Net	$	542,342		$	560,132

Amortization of intangible assets for the nine months ended September 30, 2013 and 2012 was $29,992 and $29,506, respectively. Amortization of intangible assets for the three months ended September 30, 2013 and 2012 was $10,083 and $9,808, respectively. Annual amortization for the next five years from October 1, 2013, is expected to be: $39,990; $39,990; $39,990; $39,990 and $39,990.

Target Acquisitions I, Inc. 10-Q