3. Discontinued Operations

6 Months Ended

Apr. 30, 2012

Notes

3. Discontinued Operations

3.  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 three and six months ending April 30, 2012 and 2011 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 April 30, 2012 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 three and six months ending April 30, 2012 and 2011 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.  At April 30, 2012 there were no remaining assets or liabilities related to Jack in the Box.   At October 31, 2011, there was $1,814,573 of assets related to Jack in the Box included in assets of discontinued operation and $1,010,384 of debt included in liabilities of discontinued operations on the Companies’ combined balance sheet.  At April 30, 2012 there were no remaining assets or liabilities related to Jack in the Box.

   On December 15, 2011, the Jack Frost Mountain and Big Boulder ski areas were sold and as a result the operating activity for the three and six months ending April 30, 2012 and 2011 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.  At April 30, 2012 there were no remaining assets or liabilities related to the Jack Frost Mountain and Big Boulder ski areas. .  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.  At April 30, 2012 there were no remaining assets or liabilities related to the Jack Frost Mountain and Big Boulder ski areas.

The combined assets and liabilities as of October 31, 2011 are summarized as follows:

BALANCE SHEET	10/31/11
ASSETS
Land improvements, buildings & equipment, net	$268,288
Land held for investment, principally unimproved	37,706
Long-lived assets held for sale	1,780,155
Net investment in direct financing leases	7,788,195
Prepaid expenses and other assets	895,878
Total assets of discontinued operations	$10,770,222
LIABILITIES
Debt	$1,010,384
Total liabilities of discontinued operations	$1,010,384

   Operating results, including interest expense incurred, of the discontinued operations in three and six months ending April 30, 2012 and 2011 are as follows:

	Three months ended 4/30/12	Three months ended 4/30/11	Six months ended 4/30/12	Six months ended 4/30/11
Revenues:
Applebee’s	$0	$29,000	$0	$58,000
Jack in the Box	0	33,246	10,971	66,492
Jack Frost Mountain Ski Area	0	43,124	5,097	83,131
Big Boulder Ski Area	0	24,616	5,097	46,117
Total Revenue	0	129,986	21,165	253,740
Expenses (excluding interest):
Applebee’s	0	1,548	0	3,727
Jack in the Box	0	11,894	136	24,405
Jack Frost Mountain Ski Area	7,730	7,595	7,730	10,279
Big Boulder Ski Area	186	324	489	3,166
Total Expenses	7,916	21,361	8,355	41,577
Interest and other income (interest income related to ski area net investment in direct financing lease):
Applebee’s	0	0	0	0
Jack in the Box	0	0	0	0
Jack Frost Mountain Ski Area	0	31,668	0	63,336
Big Boulder Ski Area	0	48,750	0	97,499
Total Interest and Other Income	0	80,418	0	160,835
Interest expense(calculated on debt related to the property):
Applebee’s	0	11,725	0	23,450
Jack in the Box	0	17,247	7,386	34,951
Jack Frost Mountain Ski Area	0	0	0	0
Big Boulder Ski Area	0	0	0	0
Total Interest	0	28,972	7,386	58,401
Gain (Loss) on Disposal:
Applebee’s	0	0	0	0
Jack in the Box	0	0	9,402	0
Jack Frost Mountain Ski Area	0	0	(4,803)	0
Big Boulder Ski Area	0	0	(4,517)	0
Total Gain (loss) on Disposal	0	0	82	0
Income (loss) from discontinued operations before    income taxes	($7,916)	$160,071	$5,506	$314,597