REAL ESTATE ASSET HELD FOR SALE

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

REAL ESTATE ASSET HELD FOR SALE

3. REAL ESTATE ASSET HELD FOR SALE

Real Estate Asset Held for Sale

As of June 30, 2016 and December 31, 2015, the company owned the land parcel known as Highway 20, a 38-acre site located in the City of Cumming, Georgia in Forsyth County, in the North Atlanta metropolitan area, zoned for 210 multifamily apartment units, which is classified as held for sale. During the fourth quarter of 2015, the company determined that the carrying amount of Highway 20 was not fully recoverable. Accordingly, the company recorded an impairment charge of $500,038. No such adjustment was required during the six months ended June 30, 2016.

FASB ASC Topic 360-10, Property, Plant and Equipment – Overall requires a long-lived asset to be classified as “held for sale” in the period in which certain criteria are met. The company classifies real estate assets as held for sale after the following conditions have been satisfied: i) receipt of approval from its board of directors (the “Board”) to sell the asset; ii) the initiation of an active program to sell the asset; iii) the asset is available for immediate sale; iv) it is probable that the sale of the asset will be completed within one year; and v) it is unlikely the plan to sell will change. When assets are classified as held for sale, they are recorded at the lower of the assets’ carrying amount or fair value, less the estimated selling costs.

The table below sets forth the asset and liabilities related to real estate asset held for sale at June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
Real Estate Asset Held for Sale	$	4,283,385	$	4,283,385
Liabilities Related to Real Estate Asset Held For Sale	$	18,660	$	2,612