Property and equipment consist of the following:

Real estate development costs in the aggregate of $151,906, incurred in connection with twelve real estate lots that were completed during the period were transferred from property and equipment and are held for sale at December 31, 2017 and are included in real estate lots held for sale on the accompanying consolidated balance sheets.

Depreciation and amortization of property and equipment was $286,695 and $168,236 for the years ended December 31, 2017 and 2016, respectively, of which $193,065 and $64,853 was recorded as expense in the accompanying statement of operations, and $93,630 and $103,383 was capitalized to inventory, respectively. Most of our property and equipment is located in Argentina and gross asset costs and accumulated depreciation reported in US dollars are impacted by the devaluation of the Argentine peso relative to the U.S. dollar.