The IRS invades Blair's life when they question her tax return. Little does Blair know that the title her dad has placed on her is a cover to get out of paying income tax. Blair is even more heartbroken when she discovers that all the personal vacations she has taken with her dad have been written off as business trips.

With Mrs. Garrett out of town, Blair wants to be in charge of the shop so a reluctant Jo, Natalie and Tootie step aside and let her. Quickly Blair's handling of a competitor food shop goes awry.

A disconsolate Blair locks herself in the bedroom after her father pleads guilty to charges of insider trading.

After her commencement speech is rejected, Jo refuses to make a speech at all, but then learns that her grandfather has come all the way from Poland to hear it.

Blair buys Eastland to save it from bankruptcy, and then must find a new headmaster and lots of new students.