DISCONTINUED OPERATIONS

12 Months Ended

Oct. 31, 2013

DiscontinuedOperationsAbstract

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 year ending October 31, 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 October 31, 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 years ending October 31, 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 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 years ending October 31, 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 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 on Lot 5 Maple Terrace located in Saylorsburg, PA.  A deposit was received and the transaction was expected to close October 1, 2013.  Management had become aware that settlement on the property would not occur by October 31, 2013.  On August 16, 2013, a new lease was entered into with the current lessees of the property for the period of October 1, 2013 through September 30, 2014 and an Addendum to the Agreement of Sale was executed extending the settlement date to September 30, 2014.   As a result operating activity for the property is continuing to be reported as discontinued operations for the years ending October 31, 2013, 2012 and 2011.  The net operating results were previously reported in the rental operations in the Combined Statement of Operations.  At October 31, 2013 and 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 as of October 31, 2013 and 2012, and the results of operations of the properties classified as discontinued operations for the years ended October 31, 2013, 2012 and 2011, are summarized as follows:

BALANCE SHEET	10/31/13	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

	Years ended October 31,
STATEMENT OF OPERATIONS	2013	2012	2011
Revenues:
Applebee’s	$0	$0	$106,011
Jack in the Box	0	10,971	133,335
Jack Frost Mountain Ski Area	0	5,097	163,143
Big Boulder Ski Area	0	5,097	89,119
Maple Terrace	15,000	5,750	18,000
Total Revenue	15,000	26,915	509,608
Expenses (excluding interest):
Applebee’s	0	0	4,665
Jack in the Box	0	136	44,478
Jack Frost Mountain Ski Area	0	7,730	10,279
Big Boulder Ski Area	0	472	3,983
Maple Terrace	7,905	77,995	9,032
Total Expenses	7,905	86,333	72,437
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	0	0	126,672
Big Boulder Ski Area	0	0	194,997
Maple Terrace	0	0	0
Total Interest and Other Income	0	0	321,669
Interest expense(calculated on debt related to the property):
Applebee’s	0	0	42,992
Jack in the Box	0	7,386	69,794
Jack Frost Mountain Ski Area	0	0	0
Big Boulder Ski Area	0	0	0
Maple Terrace	0	0	0
Total Interest	0	7,386	112,786
Gain (Loss) on Disposal:
Applebee’s	0	0	25,721
Jack in the Box	0	9,402	0
Jack Frost Mountain Ski Area	0	(4,803)	(387,000)
Big Boulder Ski Area	0	(4,517)	(115,000)
Maple Terrace	0	0	0
Total Gain (loss) on Disposal	0	82	(476,279)
Income (loss) from discontinued operations before income taxes	$7,095	($66,722)	$169,775