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MERCER CROSSING NOTE
12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
MERCER CROSSING NOTE

NOTE 4. MERCER CROSSING NOTE

 

In November 2015, the Company entered into a sales contract with an unrelated party. The contract was for all of the developable land owned by the Company. In addition, TCI, ARL and RAI also sold land in this transaction. Total consideration for the sale was $75 million. The agreement between the parties and TCI related to this transaction provides for TCI to hold the subordinated note from the buyer in the amount of $50 million. At the closing, the Note Payable to related parties of $9.6 million was paid off. Due to an inadequate down payment from the buyer and the level of seller financing involved, the transaction is being accounted for under the deposit method. Under the deposit method, no revenue is recognized and the asset sold remains on the books until the criteria for full revenue recognition are met.