Answer
The planes should be classified as current assets
Work Step by Step
The planes should be reported as current assets since they are primarily held for sale and chartering is a temporal move. Moreover, depreciation would not be appropriate if the planes are considered inventory. Accounting Research Bulletin No. 43, Chapter 4, Inventory Pricing Statement No. 1, states in part that the term Inventory “excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified.”
