Company: MKDWW
Filing Date: 2025-01-23
Form Type: F-1
Source: 0001493152-25-003296
Chunk: 192

Company: MKDWELL Tech Inc.
Filing Date: 2025-01-23
Form: F-1
Chunk 192
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 | SUMMARY                                        
 OF SIGNIFICANT ACCOUNTING POLICIES – Continued |

(g) Inventories, net

Inventories, primarily consisting of raw materials, work-in-process and finished goods, are stated at the lower of cost or net realizable value, with net realized value represented by estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. Cost of inventory is determined using the monthly weighted average cost method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving merchandise and damaged products, which is dependent upon factors such as historical and forecasted consumer demand.

(h) Intangible assets, net

Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets are amortized using the straight-line approach over the estimated economic useful lives of the assets as follows:

SCHEDULE OF ESTIMATED ECONOMIC USEFUL LIVES OF THE ASSETS

| Category  |     | Estimated    
 useful lives |
| Land      
 use right |     | 50           
 years        |
| Software  |     | 3            
 years        |

(i) Property, plant and equipment, net

Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any, and depreciated on a straight-line basis over the estimated useful lives of the assets. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its intended use. Estimated useful lives are as follows:

SCHEDULE OF PROPERTY PLANT AND EQUIPMENT ESTIMATED USEFUL LIVES

| Category      |     | Estimated    
 useful lives |
| Electronic    
 equipment     |     | 3            
 years        |
| Machinery     
 and equipment |     | 3-10         
 years        |
| Vehicle       |     | 4            
 years        |
| Office        
 equipment     |     | 3-5          
 years        |
| Building      |     | 20           
 years        |

Repair and maintenance costs are charged to expenses as incurred, 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 operations.

(j) Real estate properties for lease, net

Real estate properties for lease, net includes the plant and land use right, which are stated at cost less accumulated depreciation