Company: QSJC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001683168-25-006089
Chunk: 42

Company: TANCHENG GROUP CO., LTD.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 42
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 issuance. The Company is currently evaluating the adoption of this guidance whether or
not a material impact on the Company’s condensed consolidated financial statements.

In March 2024, the FASB issued ASU 2024-02,
“Codification Improvements — Amendments to Remove References to the Concept Statements” (“ASU 2024-02”).
ASU 2024-02 contains amendments to the FASB Accounting Standards Codification that remove references to various FASB Concepts Statements.
In most instances, the references are extraneous and not required to understand or apply the guidance. In other instances, the references
were used in prior Statements to provide guidance in certain topical areas. ASU 2024-02 is effective for fiscal years beginning
after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the adoption of this guidance whether or
not a material impact on the Company’s condensed consolidated financial statements.

The Company has considered all other recently
issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed
consolidated financial statements. 

    3.
    INVENTORIES

    Schedule of inventories 

     June 30, 2025  
     December 31, 2024 
  
    Ornament and adornment products 
    $1,360,526  
    $1,303,273 

No impairment
provision for obsolete inventories was recorded for the three and six months ended June 30, 2025 and 2024.

    4.
    MOTOR VEHICLE

    Schedule of motor vehicle 

    June 30, 2025  
    December 31, 2024 
  
    Motor vehicle 
    $141,308  
    $138,682 
  
    Less: Accumulated depreciation 
     (58,172) 
     (43,916)
  
    Net book value 
    $83,136  
    $94,766 

Depreciation expense recorded for this motor vehicle
for the three and six months ended June 30, 2025 and 2024 was $6,649, $6,641, $13,260 and $13,344, respectively.

     12 

    5.
    INCOME TAXES

(a)  Enterprise Income Tax (“EIT”)

Tancheng Group Co., Ltd