15. Fair Value of Financial Instruments

12 Months Ended

Oct. 31, 2011

Notes

15. Fair Value of Financial Instruments:

15.  FAIR VALUE OF FINANCIAL INSTRUMENTS:

   The estimated fair values of the Companies' financial instruments at October 31, 2011 and 2010 are as follows:

	10/31/11		10/31/10
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
ASSETS:
Cash and cash equivalents	$589,039	$589,039	$995,121	$995,121
Accounts and mortgages receivable	160,290	160,290	409,987	409,987

LIABILITIES:
Accounts payable	437,783	437,783	646,961	646,961
Accrued liabilities	415,935	415,935	385,606	385,606
Amounts due to related parties	24,792	0	7,292	0
Debt (Discontinued operations and other)	$28,123,504	$27,794,385	$28,947,454	$28,529,765

   Fair Values were determined as follows:

   Cash and cash equivalents, accounts and mortgages receivable, accounts payable and accrued liabilities:  The carrying amounts approximate fair value because of the short-term maturity of these instruments.

   Amounts due to related parties: Estimating the fair value of these instruments is not practicable because the terms of these transactions could not be duplicated in the market.

   Debt: The fair value of debt is estimated using discounted cash flows based on current borrowing rates available to the Companies for similar types of borrowing arrangements.

   As of October 31, 2011, the carrying amount net of prior period impairments for land and land development costs are $20,642,787 less impairment expense of $0 in Fiscal 2011 for a fair value of $20,642,787.  Prior period impairments for impairment on land and land development costs were $1,973,000.  The carrying amount net of prior period impairments for land improvements, buildings and equipment, net are $22,613,121 less impairment expense of $0 in Fiscal 2011 for a fair value of $22,613,121 as of October 31, 2011.  Prior period impairment on land improvements, buildings and equipment, net were $53,000.  The carrying amount net of prior period impairments for land held for investment is $6,905,668.  There was no impairment on land held for investment in Fiscal 2011 and prior period impairments were $403,000.  The carrying amount net of prior period impairments for long-lived assets held for sale as of October 31, 2011 was $3,617,799 less impairment expense of $676,651 in Fiscal 2011 for a fair value of $2,941,148.  The prior period impairments on long-lived assets held for sale were $1,644,823.  The assets of discontinued operations as of October 31, 2011 have a carrying value net of prior period adjustments for impairment of $11,272,222 less $502,000 impairment expense in Fiscal 2011 for a fair value of $10,770,220.  There were $0 prior period impairments on assets of discontinued operations.  The overall total impairment in Fiscal 2011 was $1,178,651.  The impairment for long-lived assets held for sale, land and land development costs and land held for investment was determined using level 2 criteria wherein fair value is determined using significant observable inputs, generally either quoted prices in an active market for similar assets or liabilities or quoted prices in markets that are not active. The impairment in the net investment in direct financing leases was determined with the calculation of the loss generated on the sale of the ski areas on December 15, 2011.

      As of October 31, 2010, the carrying amount net of prior period impairments for land and land development costs are $23,383,737 less impairment expense of $1,973,000 in the Fiscal 2010 for a fair value of $21,410,737.  Prior period impairments for impairment on land and land development costs were $859,749.  The carrying amount net of prior period impairments for land improvements, buildings and equipment, net are $23,795,723 less impairment expense of $0 in Fiscal 2010 for a fair value of $23,795,723 as of October 31, 2010.  Prior period impairment on land improvements, buildings and equipment, net were $53,000.  The carrying amount net of prior period impairments for land held for investment is $7,308,668.  Impairment on land held for investment in Fiscal 2010 was $403,000 and there were $0 prior period impairments.  The carrying amount net of prior period impairments for long-lived assets held for sale as of October 31, 2010 was $3,943,479 less impairment expense of $0 in Fiscal 2010 for a fair value of $3,943,479.  The prior period impairments on long-lived assets held for sale were $1,517,875.  The assets of discontinued operations as of October 31, 2010 have a carrying value net of prior period adjustments for impairment of $12,295,538 less $0 impairment expense in Fiscal 2010 for a fair value of $12,295,538.  There were $0 prior period impairments on assets of discontinued operations.  The total impairment of $2,376,000 was included in the earnings for 2010.  The impairment was determined using level 2 criteria wherein fair value is determined using significant observable inputs, generally either quoted prices in an active market for similar assets or liabilities or quoted prices in markets that are not active.