DISCONTINUED OPERATIONS

3 Months Ended

Jan. 31, 2013

DiscontinuedOperationsAbstract

DISCONTINUED OPERATIONS

3.  Discontinued operations

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 months ended January 31, 2012 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 October 31, 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 months ended January 31, 2012 is being reported as a discontinued operation.  The operating results of the ski areas were previously reported in the Rental Operations of the combined statements of operations.  At October 31, 2012, there were no remaining assets or liabilities related to the Jack Frost Mountain and Big Boulder ski areas.

On September 17, 2012, the Companies signed an agreement of sale regarding Lot 5 Maple Terrace located in Saylorsburg, PA.  A deposit was received and the transaction is expected to close October 1, 2013.  As a result operating activity for the property is being reported as discontinued operations for the three months periods ending January 31, 2013 and 2012.  At January 31, 2013 and October 31, 2012, there were assets related to the Maple Terrace property totaling $166,682 included in assets of discontinued operations and there were no liabilities.

The combined assets and liabilities as of January 31, 2013 and October 31, 2012, and the results of operations of the properties, including interest expense incurred, classified as discontinued operations in three months ending January 31, 2013 and 2012, are summarized as follows:

BALANCE SHEET	1/31/13	10/31/12
ASSETS
Land improvements, buildings & equipment, net	$124,790	$124,790
Land held for investment, principally unimproved	41,892	41,892
Total assets of discontinued operations	$166,682	$166,682

STATEMENT OF OPERATIONS	1/31/13	1/31/12
Revenues:
Jack in the Box	$0	$10,971
Jack Frost Mountain Ski Area	0	5,097
Big Boulder Ski Area	0	5,097
Maple Terrace	3,750	5,750
Total Revenue	3,750	26,915
Expenses (excluding interest):
Jack in the Box	0	136
Jack Frost Mountain Ski Area	0	0
Big Boulder Ski Area	0	303
Maple Terrace	3,754	14,295
Total Expenses	3,754	14,734
Interest expense(calculated on debt related to the property):
Jack in the Box	0	7,386
Jack Frost Mountain Ski Area	0	0
Big Boulder Ski Area	0	0
Maple Terrace	0	0
Total Interest	0	7,386
Gain (Loss) on Disposal:
Jack in the Box	0	9,402
Jack Frost Mountain Ski Area	0	(4,803)
Big Boulder Ski Area	0	(4,517)
Maple Terrace	0	0
Total Gain on Disposal	0	82
Income (loss) from discontinued operations before income taxes	($4)	$4,877