NOTE 20. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

During the fourth quarter of 2018, the Company commenced efforts to pursue monetization of certain of its multi-tenant income properties and the golf operations segment and assets comprising the Club. Accordingly, four multi-tenant income properties and the golf assets comprising the Club were classified as held for sale as of December 31, 2018. Additionally, the golf operations segment qualifies as discontinued operations and have been reclassified as such in the accompanying consolidated statements of income for the three months ended March 31, 2019 and 2018. As described in Note 3, “Income Properties”, the multi-tenant retail property anchored by a Whole Foods Market retail store in Sarasota, Florida was sold during the three months ended March 31, 2019 comprising $17.1 million of the reduction in assets held for sale during the quarter.

The following is a summary of assets held for sale as of March 31, 2019 and December 31, 2018:


	As of March 31, 2019						As of December 31, 2018
	Multi-Tenant Income Properties		Golf Assets		Total Assets Held for Sale		Multi-Tenant Income Properties		Golf Assets		Total Assets Held for Sale
Property, Plant, and Equipment—Net	$	51,492,601	$	3,659,703	$	55,152,304	$	67,810,880	$	3,659,703	$	71,470,583
Cash and Cash Equivalents		—		199,290		199,290		—		156,489		156,489
Other Assets		—		648,137		648,137		—		646,285		646,285
Operating Leases - Right-of-Use Asset		—		173,561		173,561		—		—		—
Intangible Lease Assets—Net		3,346,288		—		3,346,288		4,366,858		—		4,366,858
Intangible Lease Liabilities—Net		(440,913)		—		(440,913)		(773,705)		—		(773,705)
Total Assets Held for Sale	$	54,397,976	$	4,680,691	$	59,078,667	$	71,404,033	$	4,462,477	$	75,866,510

The following is a summary of liabilities held for sale as of March 31, 2019 and December 31, 2018:


	As of March 31, 2019						As of December 31, 2018
	Multi-Tenant Income Properties		Golf Liabilities		Total Liabilities Held for Sale		Multi-Tenant Income Properties		Golf Liabilities		Total Liabilities Held for Sale
Accounts Payable	$	—	$	318,946	$	318,946	$	—	$	199,422	$	199,422
Accrued and Other Liabilities		—		916,759		916,759		—		924,323		924,323
Operating Leases - Liability		—		173,561		173,561		—		—		—
Deferred Revenue		—		232,719		232,719		—		223,551		223,551
Total Liabilities Held for Sale	$	—	$	1,641,985	$	1,641,985	$	—	$	1,347,296	$	1,347,296

Operating Leases – Right-of-Use Asset and Liability. In connection with the Company’s implementation of FASB ASU Topic 842, Leases, effective January 1, 2019, the Company recorded an increase in right-of-use assets and lease liabilities for leases for which the Company is the lessee. The amount of the adjustment totaled approximately $208,000 for golf operations segment leases which was recorded as an increase in Assets Held for Sale and Liabilities Held for Sale.

Golf $1 Round Surcharge. On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City, for approximately $1.5 million (the “Golf Course Land Purchase”). In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the Per-Round Surcharge. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets. The first two annual payments of $70,000 each were made in January of 2018 and January of 2019, leaving a remaining commitment of $560,000 as of March 31, 2019 which is included in Accrued and Other Liabilities, a component of Liabilities Held for Sale.

The following is a summary of discontinued operations for the three months ended March 31, 2019 and 2018:


	Three Months Ended
	March 31, 2019		March 31, 2018

Golf Operations Revenue	$	1,496,693	$	1,354,356
Golf Operations Direct Cost of Revenues		(1,711,330)		(1,381,826)
Loss from Operations		(214,637)		(27,470)
Depreciation and Amortization		—		(103,556)
Loss from Discontinued Operations Before Income Tax		(214,637)		(131,026)
Income Tax Benefit		54,400		33,210
Loss from Discontinued Operations (Net of Income Tax)	$	(160,237)	$	(97,816)