3. Aircraft and Aircraft Engines Held for Lease or Sale

(a) Assets Held for Lease

At March 31, 2018 and December 31, 2017, the Company's aircraft and aircraft engines held for lease consisted of the following:

	March 31, 2018					December 31, 2017
Type	Number Owned		% of net book value			Number owned		% of net book value
Regional jet aircraft		13		83	%		13		82	%
Turboprop aircraft		8		16	%		10		17	%
Engines		1		1	%		1		1	%

During the first quarter of 2018, the Company recorded $1,050,000 in other income resulting from cash received from the previous lessee of three aircraft that were returned to the Company during 2017. Such payments were for unpaid maintenance reserves, as well as amounts due pursuant to the return conditions of the applicable leases. The Company did not accrue unpaid reserves or return condition amounts at the time of lease termination based on management's evaluation of the creditworthiness of the lessee. Therefore, the Company is accounting for payments as they are received and recorded the amount in other income.

During the first quarter of 2018, the Company made deposits of $1,236,000 for two aircraft that it intends to acquire during the second quarter. In addition to its investment in direct financing leases discussed in Note 2, during the first quarter of 2017, the Company used $62,800 for equipment to be installed on an aircraft and for acquisition costs related to aircraft acquired in 2016.

During the first quarter of 2018, the Company sold two of its aircraft held for lease and recorded a net loss of $8,200.

Six turboprop aircraft, representing 11% of the net book value of the Company's aircraft and engines held for lease, were off lease at March 31, 2018.

As of March 31, 2018, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending

Remainder of 2018	$	18,515,500
2019		24,641,300
2020		23,003,000
2021		15,901,600
2022		13,944,000
Thereafter		29,447,500
	$	125,452,900

(b) Assets Held for Sale

Assets held for sale at March 31, 2018 consist of turboprop airframe parts from two aircraft.

During the first quarter of 2018, the Company received $931,800 in cash and accrued $10,600 in receivables for parts sales. These amounts were accounted for as follows: $779,700 reduced accounts receivable for parts sales accrued in 2017, $144,600 reduced the carrying value of the parts, and $18,100 was recorded as gains in excess of the carrying value of the parts. During the first quarter of 2017, the Company received $16,200 from the sale of parts, of which $2,300 reduced the carrying value of the parts and $13,900 was recorded as a gain.