Quarterly report pursuant to Section 13 or 15(d)

FIXED ASSETS

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FIXED ASSETS
9 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
FIXED ASSETS

NOTE 5 – FIXED ASSETS

 

Fixed assets, stated at cost, less accumulated depreciation at September 30, 2012 and December 31, 2011 consisted of the following:

 

         
    September 30,
 2012
  December 31, 2011
Furniture Fixtures & Equipment   $ 40,036     $ 40,036  
Molds for Sandals     50,650       —    
Less accumulated depreciation     (15,475 )     (4,841 )
Furniture Fixtures & Equipment, net   $ 75,211     $ 35,195  

 

Depreciation expense

 

Depreciation expense for the nine months ended September 30, 2012 and 2011 was 10,634 and $1,693.

 

Molds for sandals

 

On August 1, 2012, production of sandals began and accordingly the Company began depreciating the cost of the sandals molds. The Company is depreciating the molds based on the 2009 US Master Depreciation Guide asset class.30.21: Manufacture of Finished Plastic Products-Special Tools. Under this guidance, the molds will be depreciated using the straight-line depreciation method over a life of three years.