NOTE 21. 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 and six months ended June 30, 2019 and 2018.

As described in Note 3, “Income Properties”, the Multi-Tenant Dispositions were completed during the six months ended June 30, 2019 comprising $56.8 million of the reduction in assets held for sale. Additionally, the Westcliff property located in Fort Worth, Texas is no longer being actively marketed and was reclassified as held and used during the quarter ended June 30, 2019 comprising $14.6 million of the reduction in assets held for sale.

The following is a summary of assets held for sale as of June 30, 2019 and December 31, 2018:


	As of June 30, 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	$	—	$	3,659,703	$	3,659,703	$	67,810,880	$	3,659,703	$	71,470,583
Cash and Cash Equivalents		—		238,752		238,752		—		156,489		156,489
Other Assets		—		566,100		566,100		—		646,285		646,285
Operating Leases - Right-of-Use Asset		—		138,848		138,848		—		—		—
Intangible Lease Assets—Net		—		—		—		4,366,858		—		4,366,858
Intangible Lease Liabilities—Net		—		—		—		(773,705)		—		(773,705)
Total Assets Held for Sale	$	—	$	4,603,403	$	4,603,403	$	71,404,033	$	4,462,477	$	75,866,510

The following is a summary of liabilities held for sale as of June 30, 2019 and December 31, 2018:


	As of June 30, 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	$	—	$	268,849	$	268,849	$	—	$	199,422	$	199,422
Accrued and Other Liabilities		—		910,042		910,042		—		924,323		924,323
Operating Leases - Liability		—		138,848		138,848		—		—		—
Deferred Revenue		—		215,416		215,416		—		223,551		223,551
Total Liabilities Held for Sale	$	—	$	1,533,155	$	1,533,155	$	—	$	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 June 30, 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 and six months ended June 30, 2019 and 2018:


	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018

Golf Operations Revenue	$	1,453,859	$	1,282,918	$	2,950,552	$	2,637,274
Golf Operations Direct Cost of Revenues		(1,673,633)		(1,525,053)		(3,384,963)		(2,906,879)
Loss from Operations		(219,774)		(242,135)		(434,411)		(269,605)
Depreciation and Amortization		—		(99,393)		—		(202,949)
Loss from Discontinued Operations Before Income Tax		(219,774)		(341,528)		(434,411)		(472,554)
Income Tax Benefit		55,702		86,562		110,102		119,772
Loss from Discontinued Operations (Net of Income Tax)	$	(164,072)	$	(254,966)	$	(324,309)	$	(352,782)