14. Investment in Direct Financing Leases

12 Months Ended

Oct. 31, 2011

Notes

14. Investment in Direct Financing Leases:

14.  INVESTMENT IN DIRECT FINANCING LEASES:

(Now included in Assets of discontinued operations)

   During Fiscal Year 2011, the Companies leased the Jack Frost and Big Boulder ski areas to a third party under direct financing leases that extended through 2034.  The Companies net investment in direct financing leases consisted of the following as of October 31:

	2011	2010
Minimum future lease payments	$7,426,946	$7,757,213
Unguaranteed residual value of lease properties	8,430,879	8,430,879
Gross investment in lease	15,857,825	16,188,092
Unearned income	(7,567,630)	(7,889,299)
Valuation Allowance	(502,000)	0
Net investment in direct financing leases	$7,788,195	$8,298,793

   Subsequently, on December 15, 2011 the Jack Frost and Big Boulder ski areas were sold to the previous third party lessee, therefore the operating activity for the Fiscal years ending October 31, 2011, 2010 and 2009 is being reported as discontinued operations.  The transaction resulted in a loss of approximately $502,000 primarily related to the reversal of the accrued rent receivable based on the straight line amortization of the lease.  The valuation allowance is recorded as a portion of the loss on disposal in discontinued operations Fiscal 2011.  The interest income which resulted from the direct financing lease is reported as a portion of discontinued operations.