3. Aircraft and Aircraft Engines Held for Lease or Sale

(a) Assets Held for Lease

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

	September 30, 2018					December 31, 2017
Type	Number Owned		% of net book value			Number owned		% of net book value
Regional jet aircraft		13		81	%		13		82	%
Turboprop aircraft		4		18	%		10		17	%
Engines		1		1	%		1		1	%

During the first half of 2018, the Company recorded $1,629,000 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 recording the amounts received in other income in the period in which a payment is received. The Company received no such payments during the third quarter of 2018.

The Company acquired no aircraft during the third quarter of 2018. During the third quarter of 2017, the Company used $10,557,400 for the acquisition of an Embraer 175 aircraft on lease to a customer in the United States and acquisition costs related to aircraft acquired earlier in the year.

During the third quarter of 2018, the Company sold two turboprop aircraft and recorded a loss of $2,384,300. During the third quarter of 2017, the Company sold two spare turboprop engines and recorded a loss of $173,700.

None of the Company's aircraft and engines held for lease were off lease at September 30, 2018. As discussed below, the Company has four off-lease aircraft that were reclassified as held for sale during the third quarter.

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

Years ending

Remainder of 2018	$	7,185,500
2019		28,381,100
2020		25,797,800
2021		18,696,400
2022		16,738,800
Thereafter		34,687,700
	$	131,487,300

(b) Assets Held for Sale

Assets held for sale at September 30, 2018 consist of four off-lease turboprop aircraft and airframe parts from two turboprop aircraft. During the third quarter, the Company recorded impairment provisions totaling $2,673,300 for the four aircraft and reclassified them from assets held for lease to assets held for sale.

During the third quarter of 2018, the Company received $89,200 in cash and accrued $92,400 in receivables for parts sales. These amounts were accounted for as follows: $41,100 reduced accounts receivable for parts sales accrued in the second quarter of 2018, $124,500 reduced the carrying value of the parts, and $16,000 was recorded as gains in excess of the carrying value of the parts. During the three months ended September 30, 2017, the Company received $47,500 from the sale of parts. Of such amount, $44,000 reduced the carrying value of the parts and $3,500 was recorded as gains in excess of the carrying value of the parts.