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 assets comprising the golf operations segment. Accordingly, four multi-tenant income properties and the Golf 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 nine months ended September 30, 2019 and 2018.

As described in Note 3, “Income Properties”, the Multi-Tenant Dispositions were completed during the nine months ended September 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.

In October 2019, the Company completed the sale of the Golf Club. See Note 22, “Subsequent Events” for a description of this transaction.

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


	As of September 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		—		256,395		256,395		—		156,489		156,489
Other Assets		—		482,401		482,401		—		646,285		646,285
Operating Leases - Right-of-Use Asset		—		104,136		104,136		—		—		—
Intangible Lease Assets—Net		—		—		—		4,366,858		—		4,366,858
Intangible Lease Liabilities—Net		—		—		—		(773,705)		—		(773,705)
Total Assets Held for Sale	$	—	$	4,502,635	$	4,502,635	$	71,404,033	$	4,462,477	$	75,866,510

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


	As of September 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	$	—	$	239,563	$	239,563	$	—	$	199,422	$	199,422
Accrued and Other Liabilities		—		1,119,835		1,119,835		—		924,323		924,323
Operating Leases - Liability		—		104,136		104,136		—		—		—
Deferred Revenue		—		265,515		265,515		—		223,551		223,551
Total Liabilities Held for Sale	$	—	$	1,729,049	$	1,729,049	$	—	$	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 September 30, 2019 which is included in Accrued and Other Liabilities, a component of Liabilities Held for Sale. As more fully described in Note 22, “Subsequent Events,” in connection with the Company’s sale of the Golf Club in October 2019, the Company paid the remaining $560,000 to the City leaving no remaining commitment as of October 18, 2019.

The following is a summary of discontinued operations for the three and nine months ended September 30, 2019 and 2018:


	Three Months Ended				Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018

Golf Operations Revenue	$	967,919	$	1,014,771	$	3,918,471	$	3,652,045
Golf Operations Direct Cost of Revenues		(1,326,150)		(1,388,282)		(4,711,113)		(4,295,161)
Loss from Operations		(358,231)		(373,511)		(792,642)		(643,116)
Impairment Charges		—		(1,119,362)		—		(1,119,362)
Depreciation and Amortization		—		(100,732)		—		(303,681)
Loss from Discontinued Operations Before Income Tax		(358,231)		(1,593,605)		(792,642)		(2,066,159)
Income Tax Benefit		90,794		403,897		200,896		523,669
Loss from Discontinued Operations (Net of Income Tax)	$	(267,437)	$	(1,189,708)	$	(591,746)	$	(1,542,490)