2. Discontinued Operations

12 Months Ended

Oct. 31, 2011

Notes

2. Discontinued Operations:

2.  DISCONTINUED OPERATIONS:

 On September 30, 2011, the Applebee’s located in Fort Collins, Colorado was sold and as a result the operating activity for the years ending October 31, 2011 and 2010 is being reported as a discontinued operation.  The operating results of Applebee’s were previously reported in the Rental Operations of the combined statements of operations.  At October 31, 2011, there were no remaining assets or liabilities related to Applebee’s.

   On November 30, 2011, the Jack in the Box located in Wallisville, Texas was sold and as a result the operating activity for the years ending October 31, 2011, 2010 and 2009 is being reported as a discontinued operation.  The operating results of Jack in the Box were previously reported in the Rental Operations of the combined statements of operations.  During the fiscal year ending October 31, 2011, the Jack in the Box property, with a book value of approximately $1,780,000, was classified as held for sale.  At October 31, 2011, there was $1,814,573 of assets related to Jack in the Box included in assets of discontinued operations and $1,010,384 of debt included in liabilities of discontinued operations on the Companies’ combined balance sheet.

   On December 15, 2011, the Jack Frost Mountain and Big Boulder ski areas were sold and as a result the operating activity for the years ending October 31, 2011, 2010 and 2009 is being reported as a discontinued operation.  The ski areas had been leased to an operator and a portion of the leased premises had been capitalized as net investment in direct financing leases. Therefore a portion of the operating results were previously reported in the Rental Operations and a portion of the operating results were previously reported in the Interest and Other Income line of the combined statements of operations.  The sale transaction resulted in a loss, therefore a valuation allowance was previously reported as impairment expense in the Land Resource Management segment of the combined statements of operations.  At October 31, 2011, there was $8,955,649 of assets related to the two ski areas included in assets of discontinued operations on the Companies’ combined balance sheet and there were no liabilities.

   The combined assets and liabilities as of October 31, 2011 and 2010, and the results of operations of the properties classified as discontinued operations for the years ended October 31, 2011, 2010 and 2009, are summarized as follows:

BALANCE SHEET	10/31/11	10/31/10
ASSETS
Land improvements, buildings & equipment, net	$268,288	$1,605,985
Land held for investment, principally unimproved	37,706	1,618,055
Long-lived assets held for sale	1,780,155	0
Net investment in direct financing leases	7,788,195	8,298,793
Prepaid expenses and other assets	895,878	772,705
Total assets of discontinued operations	$10,770,222	$12,295,538
LIABILITIES
Debt	$1,010,384	$1,697,645
Total liabilities of discontinued operations	$1,010,384	$1,697,645

	Years ended October 31,
STATEMENT OF OPERATIONS	2011	2010	2009
Revenues:
Applebee’s	$106,011	$78,714	$0
Jack in the Box	133,335	132,984	127,379
Jack Frost Mountain Ski Area	163,143	158,639	164,024
Big Boulder Ski Area	89,119	84,614	89,998
Total Revenue	491,608	454,951	381,401
Expenses (excluding interest):
Applebee’s	4,665	5,342	0
Jack in the Box	44,478	51,336	47,377
Jack Frost Mountain Ski Area	10,279	1,018	17,336
Big Boulder Ski Area	3,983	7,671	17,764
Total Expenses	63,405	65,367	82,477
Interest and other income (interest income related to ski area net investment in direct financing lease):
Applebee’s	0	0	0
Jack in the Box	0	0	0
Jack Frost Mountain Ski Area	126,672	126,092	125,473
Big Boulder Ski Area	194,997	192,865	190,639
Total Interest and Other Income	321,669	318,957	316,112

	Years ended October 31,
	2011	2010	2009
Interest expense (calculated on debt related to the property):
Applebee’s	42,992	31,781	0
Jack in the Box	69,794	71,322	29,651
Jack Frost Mountain Ski Area	0	0	0
Big Boulder Ski Area	0	0	0
Total Interest	112,786	103,103	29,651
Gain (Loss) on Disposal:
Applebee’s	25,721	0	0
Jack in the Box	0	0	0
Jack Frost Mountain Ski Area	(387,000)	0	0
Big Boulder Ski Area	(115,000)	0	0
	(476,279)	0	0
Income from discontinued operations before income taxes	$160,807	$605,438	$585,385