Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 148

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 19
Chunk 148
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, whereas the cost of renewals and betterment that extends the useful lives
of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded
by removing the costs, accumulated depreciation and impairment with any resulting gain or loss recognized in the consolidated statements
of income.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

(k) Real estate properties for lease, net

Real
estate properties for lease, net includes the plant and land, which are stated at cost less accumulated depreciation, accumulated amortization
and impairment, if any, and depreciated and amortized on a straight-line basis over the estimated useful lives with an estimated residual
value of the assets as follows:

SCHEDULE OF REAL ESTATE PROPERTIES FOR LEASE

  Category.      Estimated     
                 useful lives  
 ───────────────────────────────
  Plant          20 years      
  Land           50 years      

Maintenance,
repairs and minor renewals are charged directly to expenses as incurred. Major additions and improvements to the real estate properties
held for lease are capitalized.

In
accordance with ASC 360, real estate properties held for lease is subject to valuation adjustments when the carrying amount exceeds fair
value. An impairment loss is recognized only if the carrying amount of the assets is not recoverable and exceeds fair value. The carrying
amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to be generated by the assets. For the periods
presented, the Company did not recognize any impairment for real estate properties held for lease.

MKDWELL
TECH INC.

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except share and per share data)

  SUMMARY                                         
  OF SIGNIFICANT ACCOUNTING POLICIES - Continued  
 ──────────────────────────────────────────────────

(l) Leases

At
inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is or contains a lease if it conveys
the right to control the use of an identified asset for a period of time in exchange for a consideration. To assess whether a contract
is or