3. Aircraft and Aircraft Engines Held for Lease or Sale

(a) Assets Held for Lease

At June 30, 2018 and December 31, 2017, the Company's aircraft and aircraft engines held for lease consisted of the following:

	June 30, 2018					December 31, 2017
Type	Number Owned		% of net book value			Number owned		% of net book value
Regional jet aircraft		13		73	%		13		82	%
Turboprop aircraft		10		26	%		10		17	%
Engines		1		1	%		1		1	%

During the three months and six months ended June 30, 2018, the Company recorded $579,000 and $1,629,000, respectively, 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 second quarter of 2018, the Company used cash of $22,606,000 for the acquisition of two Dash 8-400 aircraft on lease to a customer in Croatia, as well as equipment added to an aircraft.

During the second quarter of 2017, the Company used $21,172,700 for the acquisition of two Embraer 175 aircraft on lease to a customer in the United States. The Company also paid a $500,000 deposit for a third Embraer 175 aircraft which was acquired in the third quarter of 2017 and is on lease to the same customer.

The Company sold no aircraft during the second quarter of 2018. During the second quarter of 2017, the Company sold two spare turboprop engines and recorded a loss of $173,700.

Six turboprop aircraft, representing 10% of the net book value of the Company's aircraft and engines held for lease, were off lease at June 30, 2018.

As of June 30, 2018, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending

Remainder of 2018	$	13,858,100
2019		27,460,200
2020		25,821,900
2021		18,720,500
2022		16,762,900
Thereafter		34,732,900
	$	137,356,500

(b) Assets Held for Sale

Assets held for sale at June 30, 2018 consist of turboprop airframe parts from two aircraft.

During the second quarter of 2018, the Company received $73,400 in cash and accrued $41,000 in receivables for parts sales. These amounts were accounted for as follows: $10,600 reduced accounts receivable for parts sales accrued in the first quarter of 2018, $85,700 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 second quarter of 2017, the Company received $96,300 from the sale of parts, of which $70,400 reduced the carrying value of the parts and $25,900 was recorded as a gain.