The man in the saddle is angular and long-legged. His skin is sun-dyed brown. The gun in his holster is grey steel and rainbow mother of pearl. It's handle unmarked. People call them both the sick shooter. The NBC radio network presents James Stewart as the sick shooter. A transcribed series of radio dramas based on the life of Britt Ponson, the Texas Plainsmen who wandered through the western territories, leaving behind a trail of still-remembered legends. About the last place I expected to be that 2D was the town of Powder Crick. The Double G Ranch where I'd been working was clear on the other side of the territory, and it was about 200 miles away. But when Sam Griffith, he's the owner of the Double G, when Sam got a chance to buy off Forest Trent's herd, he sent me over to close the deal. Well, the next thing I knew, I was walking down the main street on my way to the bank where I was supposed to meet Trent. It sure was a nice day. Kind of Indian summer-like, a lot warmer than it had a right to be in October. The sun had fooled the maple trees, thinking it was spring. A couple of them beside the Civil War cannon, the square were even starting to bud. The two fellows sitting underneath it playing checkers Well, it looked like the sun had fooled them, too. Howdy. Just a minute, mister, just a minute until I make this move. There. How'd I hold you, Jonah?  Well, I didn't want anything. I just said howdy. That's all. Oh, howdy. Well, speak to the man, Jonah. He spoke to us. It's my move now. Do me talking afterwards. Yeah. Howdy. Ah, it's a nice day. Yeah. See that gun here, Jonah? Yep.  My name's Ponsett. You hear that, Jonah? He's Brett Ponsett. We just kind of wondered when you were going to show up with Ponsett and expect him for the last month or so. What's that? When you're going to jump, you're going to take it. That's the rule. All right, all right, Jonah. I know the rule. We'll take it then take it. There. You satisfied? You said something about expecting me. Sure. Ever since we heard the news. Congratulations. Why? He said congratulations. Let's get on with the game. Sure, I'm moving. How in Sunday should I know? Well, I don't like to keep interrupting, but I wonder if you would mind explaining just what you meant by... Jonah's trying to say. I don't want him to claim I beat him because we kept him from concentrating. No, no, no. Of course not. Well, I knew that the Trent cattle turned out to be good stock and Double-G was lucky to be buying them. But since they weren't going to belong to me, I couldn't see why congratulations were in order. Unless folks in Powder Crick had heard wrong, unless they thought I was outfittin' a ranch of my own. And I started to explain things to the fellas playing checkers, but they shushed me again, good and loud this time. So I gave up and went on town toward the bank. I would just pass them by the newspaper office when I bumped into Quint Todd. He was editor of the Powder Crick Press in weekly newspaper. Matter of fact, he was more just an editor. Quint's Todd retired in the last six or seven years, and he was putting out the paper practically single-handed. Afternoon, Quint. Huh? It's you, Ponsett.  Well, I'm here if that's what you mean. I didn't realize folks were so anxious about me. Some of us are anxious, maybe. Some of us ain't. What, are you upset about something, Quint? Why should I be upset? Well, I don't know. Things are all right, aren't they? I mean, with the paper. Paper's fine. I'll save you the next issue so you can see your name in print. Well, I sure can't take any reason why you'd be writing about me. It's customary, ain't it? It's customary to write about the groom. The groom? Well, Quint, listen to me. I hope you'll be real happy, both of you. No, but Quint, hey! Hey, for Pete's sake, Quint! Lost the senses. That's the only explanation. Quint thought of just plain lost the senses, that me being a groom, me, and who on the Sam Hill did he think I was going to marry? I hadn't even been keeping company. Not that I have anything against marriage, you understand? I, like people say, it's an institution. A... noble institution. Why, some of my best friends are married. And I... I suppose someday, not right away, of course, not very soon, but... someday, maybe, I'll... Well, I...  Huh? What's the matter?  Oh, hello, Trent. I was kind of preoccupied, but I was thinking about something. Oh, well, I reckon we shouldn't expect you to have all your faculties in good working order. Not at a time like this, huh? Oh, sure was a surprise. Never thought I'd see the day when some woman would put a saddle on you. Why? Well, we'd better get over to the bank. I told Mr. Frederick that we'd be there by three o'clock. He's drawn up the papers. Yeah? Now, about me getting married, the fact of the matter is... You know I was just joshing with that saddle tall. Oh, yeah. It's high time you did put down some roots. Maybe so. Maybe so, Trent. Well, that's plausible. That's plausible, Trent. But just where did everybody get the notion that I was almost ready to... You didn't think you could keep it a secret? A secret? Many? Yeah, that's who told me. Of course, there'd been rumors going around for several weeks, but until I heard it from many herself... Hold on, you mean many Flint? Well, who else would I mean? It's her niece you're marrying, ain't it? What are you acting so strange about? I just want to get this straight. Many Flint told you I was marrying her niece? Well, she told everybody. I say. I know how a man feels jump overboard. I felt the same way myself, sort of awkward and embarrassed. Well, these are just made. Your folks didn't know about it so they wouldn't poke fun the way they always do. But you can't blame many for spreading the news. Well, I sure do, Blammer. Well, now, Brit, many has been like a mother to Helen raised her since she was a baby. Well, Helen ain't never had no folks of her own. I know that. I know that. Well, then, you shouldn't mind many being proud. Why shouldn't she do a little brag? Well, of course. The women folks around here seem to think you're quite a cat.  Well, here's the bank. I suppose that you'll want to get this business done with a bottle so you can get straight over to Minnie's place, huh, Brit? Uh, yeah. You know, I wouldn't like to get over to many. You mind if I command many? Well, uh, well... Excuse me. Thanks. It's sure nice to see you, Brit. I didn't have any idea you were in Potter Creek. I didn't have any idea at all. Uh-huh. You just pass them through, ain't you? You're not saying. Some folks seem to think I am. I've at least long enough to get married. Oh, you've heard. Well, so has everybody else. As far as I can tell, your announcement of my engagement seems to have blanketed the whole town. Now, Brit, I can explain. Well, that's why I'm here. Why don't you just sit down over there on the sofa? I've got some oatmeal cookies out in the kitchen. I just made them this morning. Many? Yes. You just can forget about the cookies. I really don't have much of an appetite. I'm waiting, men. Well, you see, Brit, I only did it for Helen. Now, she's a fine girl, and I wanted to help her out. Oh. On account of Quint. Quint Todd. They've been going together for nearly six years now, but he just never seemed to get around to asking her to marry him. Well, he must have his reasons. A man usually does. Oh, it's because of his father. You see, Quint's been taking care of old man Todd ever since he retired, and it must cost money him being so sickly all the time. Uh-huh. But Quint put him there either. I'm not fancy-closing a fine house. She's the practical type. Just what has this got to do with me? Well, I had an idea. I thought if maybe there was somebody else if Quint believed Helen was interested in another man, well, maybe he'd come to his senses and take the bull by the horns and marry her himself. You've been sort of using me as a decoy. Is that the idea? I knew you were working for the double G. It seemed like you'd be showing up in these parts. Not for the time being, anyhow. And afterward, well, after Quint and Helen tied the knot, then it wouldn't matter. Well, you ought to be ashamed of yourself, man. Both you and Helen. You don't think she knew about it? Of course not. I didn't dare tell her why she had never stood for it. Well, then how on earth did you manage to convince her that I was interested? I've got a sister living over in Black Mountain. That's not far from the double G. No, but what I mean is, how did you ever... Well, I... There were some letters after the post them for me. They were... They were love letters. I sort of changed my hand right then and signed your name. Many flint. I guess you might as well know the rest, too. Well, when Helen answered them, when she wrote back to you, well, I kind of saw to it that her answers never got mailed. But... Well, I just don't know what to say. Oh, I never dreamed it would go this far, Britt. I was sure Quint would start talking serious when he first found out that you and Helen were correspondin'. But he didn't, and then... Well, I thought maybe that your letters got a little more... sincere. Well, maybe that would make him jealous. I left him around where he couldn't help seein' him whenever he come callin'. You didn't actually propose in my name. Oh, no! Britt! Well, not in so many words, but... readin' between the lines, well, that's how Helen took it. She wrote you her answer two weeks ago. She wrote, yes. What? Your letters were mighty convincing. Well, then you better start figurein' out some way of unconvincin' her. Well, I don't know. Look, men, now, Helen's got to know the truth. And if you won't do it, well, I'll just have to tell it all about it myself. Because... Oh, I guess maybe you... Well, you hear already. Hello, Helen. Goodness, it sure is good to see you, Britt. You're looking fine. I saw you, Helen. I saw you. I wish I'd known you were coming. Well, they're not doing the marketing. No, it didn't matter. Oh, Britt, I just got to tell you. Maybe I shouldn't say it right out like this, but... However, since I was a little girl, I looked up to you, so... It just seemed to me you were the finest man that ever came through Powder Creek. No, no, Helen... Well, I... I never guessed it someday. Round the blue and I... Oh, Britt, I'm so happy about it. Excited and happy. I just hope you're as pleased as I am. Are you, Britt? Sure, Helen. Sure. We'll return to James Stewart as the six-shooter in just a moment. Every man and woman in the armed forces will tell you the only call that takes precedence over mess is mail call. And when a letter is more important to a hungry GI than food, you know it means something. And the truth in Korea is no reason why we should stop writing letters to our men and women in service, whether in U.S. camps or overseas. Mail from home is just as important now as it ever was. Oh, yes, and be sure to mail your soldier's Christmas packages this week. In that way, you'll be sure he'll receive them in time to make his Christmas away from home a little more cheerful. Now, act two of the six-shooter, starring James Stewart as Britt Ponsett. There just wasn't anything else to say. There just wasn't. I couldn't tell Helen that I'd never really thought about her in a Marian way. And besides many, she caused all the trouble. It was her place to set things right. Men didn't open her mouth. She just stood there staring at us to her bifocals, real pleased with herself. The next thing that happened was Helen invited me to supper. Oh, boy, I sure didn't want to accept all I wanted to do was just get out of the house and get out of Powder Creek, too. But what I wanted to do and what I did were two different things. I went back to the hotel where I was stopping to change my shirt and I wrote out the menus again. I guess Britt doesn't like my cooking at many. Are they eating the same? Oh, it's not that, Helen. Everything is fine. I had a pretty big dinner at noon and it kind of stayed with me. More coffee, Britt. Thanks, man. You'll have to tell me your favorite food, Britt, so I'll know what to fix after. I sort of like most everything. Apple pie, I bet. Most men like apple pie. Whenever Quentin and I went... Speaking of Quentin, I ran into him today. I'd just as soon not discuss him. Always seemed to me to be an awful nice sort of a fella, please. Please, Britt.  Well, I'll just read up the table. Oh, here. Here, let me help. No, no, no. I can manage. Besides, you too have lots of things to talk over. Well... All right. Be a warm night for this time of year. Moon, too. A harvest moon. Oh? I... I had noticed. We ain't taken down the porch swing yet, Britt. Oh, that's all. It... mightn't be kind of nice to sit outside for still. Well, whatever you say, Helen. Whatever you say. Are you sure you're not too cold out here? Oh, no. No, I'm fine. If I do get chilly, you could sort of... Helen... Helen, about us getting married, we may not be able to have the wedding right away. Oh? You see, over at the double G where I'm working, there's no place we could live. What?  I did. You said it would fix up real easy, but there'd be plenty of room for both of us. Well, it would. It would have fixed up easy, Helen. But last week, there was a fire, and that cabin just burned right down to the ground. Oh, I see. There's nothing left of it now, but just a few ashes. And that's one of the reasons I came over here to Powder Creek to explain about us having to postpone the ceremony, you see. Well, you don't have to stay at the double G? Yes, I do. Yes, I do. I signed up for all the next year. I don't have any choice, so maybe we ought to not be formally promised. But I mean, if somebody else came along, I wouldn't blame you not for waiting. Britt. There won't be anybody else. Oh, you never know. A year isn't very long to wait a year isn't long at all. No, no, I guess not, but just in case. Wait a minute. I've got an idea. We don't have to wait. We can be married right away before you go back to the double G, then afterward I can stay on with that man. There'd be time for me to be together when you come over to Powder Creek for a while. I never thought of that. You... You don't seem very anxious, Britt. From the sound of your letters, I thought you wanted to get married. Oh, sure. Oh, sure. It's just, I... Oh. Oh, well. Well, it looks like somebody's riding up this way. But... It's Quint. Quint Todd. Oh. Oh! I'm going in the house, Britt. I don't want to talk to him. You and Quint used to be pretty good friends, didn't you? That's all we were, just friends. He didn't mean anything to me, not really. Oh, well, you sure start running every time the name is mentioned. I'm not running? Oh. All right, I'll... Yeah, all right. Good evening, Quint. Hello, Ponson. Helen. Good evening. You left word at the press office. You wanted to see me. I left word. I figured he'd want to get the details on our plans. The paper comes out tomorrow, doesn't it? That's right. Well, I... I just want to tell you couldn't have come at a better time. You see, we just finished settling things. The ceremony's going to be this week. Haven't decided on a day yet. How's Friday, Helen? Well, yes, yes. The sooner the better. The sooner the better. Friday, then. Church wedding. Of course, of course. I want everybody to come. Everybody in town. You better say so in the paper. I'll find out for my invitations. You're invited, too, of course, Quint. I'll try and make it. There won't be much of a honeymoon. I'm heading back for the double G first part of next week. Helen's going to stay here with her aunt. She... She's going to stay in Powder Creek? Oh, for the time being, anyway. Don't sound like much of a marriage to me. Well, it's not the way we'd prefer it. But, of course, you know, you can't always fix things up perfect. You have to take the better with the sweet, you know. Yeah, well, when I get married, I'll give my wife and some money in the bank. There are more important things than houses and money. You never said so before. I never said I wanted a house of my own, did I? Well, no. But I couldn't ask you to move in with me and Pa the way he's ailing all the time. That was just an excuse. If you love me, you do that. I did love you. You must have known I did. How was I to know? There's no point in hashing it over now. Good night. Oh, now, hold on, hold on, Quint. I want to get this thing straight now. I could hardly believe my ears just now. You said you were in love with Helen? I still am if you want to know it. Quint. Well, I sure don't like the sound of this. Helen's engaged to me. How I feel about her doesn't matter. It's how she feels it counts. But if you're in love with her, how do I know she's not in love with you? It's pretty plain that she isn't. I don't know. I don't know. You know, being in love usually doesn't matter. I don't know. You know, being in love usually works both ways, you know. I don't know about this. Well, Helen, what about this now? Britt, you know I don't care anything about him one way or the other. Is that the truth? Are you talking the truth now? We're not starting our marriage on a lie now, are we? Well, maybe I was fond of Quint once, but that was before. Well... You're all over it now. Are you sure? I'm promised to you. Yeah, yeah, but I... I wouldn't hold you to that promise. As a matter of fact, I wouldn't say you break it if I thought there was somebody else. Well, that's mighty generous of you, Britt. But you don't need to worry. Of course, if our marriage didn't go through, I'd be kind of upset. Hurt? Maybe? I wouldn't ever hurt you, Britt. Not for any... Oh, I'd get over it. I'd get over it. That man always does, at least I always have before. For? Oh, sure, sure, a lot of time. But... You wrote me that I was the only girl you ever... Oh, well, I... I'll tell you the truth. What I meant was that you were the only girl I'd ever been engaged to, you see. Oh. That's what I meant. Looks to me like the choice is up to you, Helen. Yes, yes, I... I think that's the way I see it too. If you're smart, you'll choose Ponsett. I sure haven't got anything to offer you. Just a small-town newspaper that wouldn't even give us a decent living. Oh, now stop talking yourself down, Quent. Now, the Powder Creek Press, one of the finest weeklies in this part of the country. Now, you know that. Well, Britt, he's a six-shooter. Why, he's practically famous. All I am is a cow-poke. I'm just an old cow-poke. I don't even know whether I'm going to have a job from year to year. Not just the same. Just an old cow-poke. I think all the people on the territory would be pleased. Oh, be quiet.  I know who you are and what you are, and I know which one I'm... which one I'm... Britt. Oh, you're getting a fine man, Helen. Quent, I told you to be quiet. Britt, I'm sorry. I hope you won't think that I'm... I'm sick or I don't know my own mind. Well, you... you don't really need a wife. Helen, you don't mean you're going to take me. And Quent... well, he needs somebody to look after him. I've seen that house of his. Well, I'll bet the place hasn't had a good spring house been in for the last four years. Quent's father, he's a nice old man, and with a woman to look after him, maybe he won't be so sickly all the time. Well, you still haven't said that you love Quent. I guess I've been in love with him ever since. You won't think too badly of me, Quent. No, no. No, I... It's kind of a blow, I guess. But like I said, take a little while to get over it, and I'll... I'll manage somehow. I'll... I'll manage. Quent and Helen stand out there on the porch. I went inside to get my hat. Many was hovering by the front window. When she saw me, she shot it real quick. Tried to appear innocent. Well, it looks like your scheme finally worked out, man. My scheme? It seems to me it was more yours than mine. No, what are you talking about? You know very well that you're asking Quent over here tonight with what brought things to a head. Well, I just wanted to make certain he had all the facts about our wedding. That's all. So the story on the paper would be accurate. Oh, sure. Sure, I know. Oh, poor Quent. What? Well, I guess he deserved it after making her wait all this time. Well, what do you mean, Manny? Well, I was just thinking. He's gonna have to tell you the line real close, and he's not gonna win many family arguments, neither. Well, I don't see why not. Well, I'll tell you why not. Every time Helen has trouble with him, all she'll say is, don't forget I could have married the six-shooter, but I gave him up for you. And Quent'll just have to sit there and take it no matter how often she says it. That's all now, man. Well, Quent and Helen were married the following Sunday. I stayed over for the wedding. Matter of fact, I was best man. Both of them insisted on that. But I didn't enjoy the ceremony very much. I kept thinking that it could have been me standing there saying the ideas. And she wasn't sure that close call. The six-shooter is an NBC radio network production in association with review productions. It is based on a character created by Frank Bird, and the transcribed story is written by him. Mr. Stewart may currently be seen in the Universal International picture of the Glenn Miller story. Others in the cast were Barbara Eiler, Virginia Craig, Bill Johnstone, Sam Edwards, and her biker. Special music for this program was by Basil Adlin, and the entire production is under the direction of Jack Johnstone. All characters and incidents were fictitious, and any resemblance to actual characters or incidents is purely coincidental. This is Hal Gibney. Tonight here, Angela Lansbury in the NBC Star Playhouse on the NBC radio network.


Hello and welcome to this session in which we would look at exchange of non-monetary assets, which is part of asset valuation. Simply put, when we do an exchange, when we exchange one asset into the other, at what price? At what price do we record the new asset? This is what exchange of non-monetary asset. The same concept apply from the prior session where we looked at acquiring of property, plant and equipment via cash transaction, issuing of that lump sum purchase or issuing of stocks. The principle is the same. Property, plant and equipment are recorded at the fair value of what's given up or the fair value of the asset received and we talked about this. Exchange of non-monetary asset is little bit more involved because we might have commercial substance or lack of. We have to compute gains and losses and we have to know what do we have to do with gains and losses and sometimes cash might be involved, either received or paid. Because of these reasons, this topic is a little bit challenging for most students. This topic is covered in advanced and intermediate accounting as well as the CPA exam. Whether you are an accounting student or a CPA candidate, I strongly suggest you take a look at my website farhatlectures.com. I don't replace your CPA review course. I'm a useful addition to your CPA review course. I explain the material slower. I give you the theory behind the concept. I go a little bit more in depth than your typical CPA review course, which will help you to prepare for your CPA review course. Your risk is one month of subscription. Give it a try. See if it works. If it works, go ahead and keep it. If it doesn't, that's your risk. Your potential gain is adding 10 to 15 points to your CPA exam score. If not for anything, take a look at my website to find out how well or not well your university doing on the CPA exam. This is a list of all my courses that I have offered lectures, multiple choice practice. Take a look at them. My CPA supplemental material are aligned with your backer, Roger, Gleam and Wiley. So it's very easy to go back and forth between my courses, my material and your CPA review course. I also give you access to 1500 plus AI CPA previously released questions with detailed solution. If you have not connected with me on LinkedIn, please do so. Take a look at my LinkedIn recommendation, like this recording, share it with other connect with me on Instagram, Facebook, Twitter and Reddit. Let's start by discussing the difference between an exchange with commercial substance versus an exchange that lack commercial substance. First, we have to understand we are exchanging one asset into another asset. So one asset going out and another asset coming in. This is what non-monetary exchange means, no money involved. Could be a little bit of money, but the point is it's no money involved. An exchange is considered to have a commercial substance. If the future cash flow as a result of this exchange changes, in what sense? The amount of cash flow changes. Obviously, we want to get more cash as a result. In other words, this exchange improve our cash position. It's going to generate more cash for us in terms of revenue generating. We're going to be generating more cash. The timing we made generating this cash earlier. There is less risk having this asset in generating cash. So this exchange, this new asset is from a business perspective, it's going to give us more cash sooner and the risk is lower versus an exchange where as a result of this exchange, your cash flow does not change. What does that mean? If your cash flow does not change, it means this exchange lack commercial substance. There's no business sense. Why will you exchange one delivery truck into another delivery truck? If the effect on your cash flow timing, risk and a bound does not change. It means there's no business sense. So this is what we mean by it has commercial substance versus lacks of commercial substance. Has commercial substance means it makes business sense. You are doing it for business purposes. Exchange commercial substance. You are just doing this exchange to shuffle papers, to either book a gain or a loss. So let's start with commercial substance. If the transaction has commercial substance, it means it makes sense. It's for business purpose. You record any gain and any loss. So the first thing you do in an exchange is determine whether you have a gain or a loss because think about it. When you give up an asset, well, when you give it up, it's as if you are selling it, getting the cash and using this cash to buy something else. Well, you have to record it again or a loss. If the problem says it has commercial substance, it's easy. You don't have to think about it. You book the gain, you book the loss. This is what I mean by easy. Now how to compute the gain or the loss? You might have forgot how to compute the gain or the loss. You compare the fair value of the asset given up versus the book value. If the asset given up has a higher value than the book value you have a gain. So if you are given up an asset with $10, it has a book value of eight. Well, think about it, you have a gain of $2 because if you sell it, you would sell it for 10. The book value is two, you have a gain of two. You would sell it for 10. The book value of eight, you have a gain of two. If on the other side, you have an asset with a fair value of 10, but it has a book value of 15, well, you have a loss of $5 because if you sell it, you can only get $10 for something that's worth 15. Now how to compute the book value? Maybe you also forgot how to compute the book value because in the problem, sometimes the book value is giving. Sometimes it's not giving. Sometimes what they give you is the cost minus accumulated depreciation. Well, this is how you come up with the book value, cost minus accumulated depreciation. Usually the fair value is giving. What's the fair value is how much you will get for this asset if you sold it to someone else to a third party. So how to compute a gain or a loss? That's the first thing you do in a non-monetary exchange and these are the rules for the gains and the losses and hopefully they make sense, but you have to know them inside out how to compute the book value if not giving and how to compute the gain or a loss. So commercial substance is pretty straightforward. There's nothing to it because any gain, any losses is recorded. Well, what about lack of commercial substance? Well, if you have an exchange and it lacks commercial substance and you have a loss, also that's easy. You would always record the loss and this is true for financial accounting and reporting. Financial accounting and reporting because we are conservative. If you have a loss, you would always record the loss. Now this is going to be different when you are studying in your tax course or you are studying for reg on the CPA exam on the contrary for tax purposes. Businesses like losses because they reduce their taxes, but here we are dealing with a financial accounting course which is intermediate accounting. So losses are always recognized whether you have a commercial substance, no commercial substance. You have a loss, you record the loss. It's that easy. When it comes to gains, now we have a gain and the gain lack commercial substance. Well, what do we have to do? If no cash is involved, simply put, the problem says you did not receive any cash, you did not pay any cash, no cash is involved, no worries. We're going to defer the gain. What does that mean? It means we don't record the gain. What do we do with the gain? We defer the gain. What is deferring the gain? Don't worry, we'll talk about that in an example. We're going to defer the gain. What happened if you gave up cash? If you gave cash in the exchange, same thing. You defer the gain. No, don't record the gain. Same thing. So those two are the same. Whether no cash is involved or you are giving the cash, no gain. What happened if cash is received? Now you have an exchange and you received cash. Here's what's going to happen. Portion or all the gain is recorded. Now you compute the gain, a portion of it could be recorded or the whole gain might be recorded. Now how do we determine whether it's a portion of the gain or the whole gain is recorded? Simply put, we're going to use this formula. We're going to take the cash received because again, we received cash. We're going to take the cash received, which is called the boot. We're going to divide it by the cash received plus the fair value of the asset received, plus the fair value of the asset received. And this is going to give us some sort of a ratio. For example, if we have 10 up here and 50 here, well, we have to find out in the denominator 10 divided by 50, which is 1 fifth is 20%. Well, if it's 10 up here and 100 down here, then it's 100 in the denominator. Let me just differentiate the denominator. This is the numerator, the cash received or boot received, and the denominator is the rest. Well, we have to compute this ratio. And if this ratio is less than 25%, what we do is we will take the gain and multiply it by 25%. And this will be the gain that's recognized. If this ratio, let me put this ratio and use a different color, if this ratio here is greater than 25%, simply put, we received 25% of the transaction is cash, well, it becomes easy. It's treated like it has a commercial substance, then you would recognize the full gain. If it's less than 25%, you will compute the gain and multiply by the ratio. Well, the only way to understand this and see this is to actually work an example. So let's start with easy example, then we'll get to the most challenging starting with this example. Adam Company traded its old equipment for a newer equipment. The old equipment has a book value of 100,000. Notice the book value is giving cost of a half a million less accumulated depreciation. It has a fair value of 90,000. Adam also paid $420,000 in cash as a part of this exchange. The exchange has commercial substance. So good. So once the exchange has commercial substance, you are told the exchange has commercial substance. Sometimes they will tell you the exchange will change the timing amount or risk of your cash flow. It's the same thing. What does that mean? It means I'm going to compute the gain or the loss, and whether I have a gain or a loss, I'm going to record them. Let's start to do this. The fair value of the asset is 90,000. The fair value of the asset is 90,000. The book value is 100,000. Well, as a result, I have a loss of 10,000. Guess what? I am going to record the loss. So start by debiting the loss. Loss on the exchange, $10,000. The next thing you should do, next thing you should do, since you are getting root of the asset because you are exchanging the old asset, just remove the old asset and remove the old accumulated depreciation. So credit the asset for half a million debit. It's accumulated depreciation. Well, what would I do next? Easy. I paid $420,000 in cash. I'm going to credit my cash $420,000. At this point, all what you are left with is recording the new asset. The new asset is basically, if you don't know what you're doing, the new asset is a plugin. The new asset is a plugin. Therefore, you can plug it in or you want to go back and remember the new asset, how much you would record an asset, it's how much you gave up. What did you really give up? You gave up fair value of an asset of 90,000 and you gave up fair value of 420. So 420 plus 90 is 510,000, 510. Therefore, your new asset will be recorded at 510,000. It will be recorded at 510,000. So that's the deal, 510,000. So this transaction, we had a loss and the loss has commercial substance and the loss has commercial substance. Let's change this example and assume the transaction lacks commercial substance. Looking at the same scenario, if it lacks commercial substance, nothing will change. We would still record the loss, remove the old equipment. The amount of cash paid is the same and the asset is recorded for the same amount, 510. Simply put, whether the transaction has commercial substance or lack commercial substance, it's the same transaction. It's the same transaction. Let's take a look at another example. Adam Company traded its old equipment for a newer equipment. The old equipment has a book value of 100,000, cost minus accumulated depreciation 500,000, cost 400,000, accumulated depreciation. The fair value is 100,000. Adam paid 420 in cash as part of the exchange. The exchange has commercial substance. Well, once I know it has a commercial substance, it's easy. Why? Because any gain, any losses are recorded. Let's start to find out whether we have a gain or a loss. The fair value of the asset is 120. The book value is 100. I have a gain of 20. I will book the gain of 20,000. The next thing I do is start with the easy part. Again, remove the old asset, remove its accumulated depreciation, credit the old asset, debit accumulated depreciation. Also, what's easiest to record the cash, credit the cash, 420. Now, what you have to do is book the new asset. The new asset is based on what you gave up, fair value of 120 plus 420. So I gave up a fair value of 120 plus 420. I gave up 540,000. Well, the new asset is recorded at 540,000. At this point, if you are up to this point, all what it is, it's a plug. You need the entry to balance. So a plug of 540 will make a balance, and that's the entry. Now, let's take a look at the same example, and now we're going to say it's the same example, the transaction lacks commercial substance. What does that mean? It means we have a gain of 20,000, but this gain has to be cannot be recorded. We have to defer it. Now, we're going to explain what is deferring is. Well, since we cannot record the gain, let's get rid of the old asset and get rid of its old accumulated depreciation, credit the old equipment, half a million debit accumulated depreciation. This does not change. Also easy, let's record the cash, $420,000 in cash. Now, how much do we record the new asset at? Well, remember, we record the new asset that we gave up. That's the rule. We gave up $120,000, fair value of an asset of $120,000. We paid cash $420,000. That's 540,000. However, what's going to happen is we're going to reduce the new asset by the gain minus $120,000. And here, we can explain what's going to happen with the deferred. So the new asset will be recorded at $520,000. So what is the meaning? What is the value of this minus $20,000? So what do we mean by deferring the asset? What we did is this. We lowered the basis of the asset. In other words, if we did not deferred the gain, the asset would have a basis of $540,000, which is a higher basis. Now, by reducing the basis by $20,000, what we did is we reduced the basis for the future. So when we sell this asset for the future, our basis are $20,000 lower. If our basis are $20,000 lower, it means our gain in the future will be $20,000 higher. So what we did with this $20,000, we deferred it. How did we deferred it? We hide it in the new equipment. We lower the newer equipment cost. And by lowering the newer equipment cost, what we did is we lower the basis. By lowering the basis, when we sell it in the future, we're going to have $20,000 more in gain. And this is how we deferred the gain. Again, make sure total debits equal total credits. And this is what we mean by deferring the gain. We deferred the gain by simply reducing the new asset. If we go back to the prior one, when it has commercial substance, all what we did is basically the difference is we took $20,000 out of the gain. And to make it balance, we reduced the debit by $20,000. That's all what we did. And by doing so, we deferred the gain. We pushed the gain into the future when we exchange or sell this asset down the road, this new asset. Now let's take a look at this example. Adam traded a used machinery with a book value of $80,000. It has a cost of $150,000 minus accumulated depreciation of $70,000 and a fair value of $100,000. Adam receives in exchange a machine with a fair value of $90,000 plus cash of $10,000. Now, this is where we have to be careful because now we received cash. First, the first thing you do is you always find out whether you have a gain or a loss. Well, the book value of the fair value of the machine given up as $100,000, the book value is $80,000. We have a total gain of $20,000. Well, we have a gain of $20,000. We have to be careful. We have a gain of $20,000 and we received cash. And we received cash. Well, remember, when we have a gain and we receive cash, some of the gain or the full gain might be recognized. How do we find this out? Well, we use this proportion. Boot received divided by boot received plus the fair value of the asset given up, which is the $90,000. I'm sorry, asset received, not given up in exchange for asset received. So this is the $90,000 asset received. This ratio, if we take $10,000 divided by $100,000, the ratio is 10%. 10% times the gain of $20,000 equal to $2,000. So this is the $2,000 that we are going to record. Okay, we're going to record $2,000. So we have $20,000 in total. We're going to record $2,000. And guess what's going to happen? The $18,000 remaining will be deferred. So this is recorded or recognized. So we're going to record this $2,000 and defer $18,000. That's what we're going to do. Let's start with the journal entry. Start with the easy part. Get rid of the old asset and get rid of its accumulated depreciation. Credit the old machinery 150, debit accumulated depreciation 70. Also, I know I can recognize $2,000 of gain. I'm going to recognize this $2,000 of gain. Credit the gain $2,000. What else is easy? I received cash $10,000. I'm going to debit cash $10,000. At this point, at this point, your new asset is a plug, but you don't want to treat it as a plug just in case you made a mistake. You want to confirm that it is correct. What did you give up? Well, you remember, you record the asset based on the amount that you gave up. Well, you gave up a machinery with a fair value of 100,000, right? A machinery with a fair value of 100,000. Let's see. Traded a machinery with a fair value of 100,000. They gave you 10. They gave you, for the 100,000, they gave you 10. So simply put, you gave up a net. What you gave up is 90,000 because they gave you $10,000 in cash. Now, remember, this is what you gave up. In net, you gave up 90,000, right? Because you gave up 100,000. They gave you back 10,000. So net, you gave up 90,000. Remember, we have to lower our basis now by the third gain. So I'm going to change color here to lower the basis. I'm going to lower the basis by 18,000. When I lower the basis, my new asset will be recorded at 72,000 because I need to defer the gain. So the new machinery will be recorded at 72,000. Make sure always credit 152, 70 plus 72 is 142 plus 10 is 152. 152 debits equal to 152 credits. So keep the machinery for last. Make sure it makes sense and it's a plug at the end because the others, once you fill in everything, you will be fine. Now, the best way to understand this better and get better at it is to work multiple choice and examples and view additional lectures. And this is where you would go to my website and do the work. At the end of this recording, I'm going to remind you whether you are an accounting student or a CPA candidate to take a look at my website, farhatlectures.com. As I said earlier, I don't replace your CPA review course. Use me along your CPA review course. I'm a useful addition. You're going to pass your CPA course once. Give it everything that you have. Don't shortchange yourself. Pass the exam. The exam is worth it. My subscription is nominal one month. Give it a try. I mean, one month a try. If you like it, you keep the subscription. If not, you cancel. It's as simple as that. Good luck. Study hard and stay safe.


Hi, I'm Victor Rosemann, the author of the Daylight Passenger Car article. Through a little camera magic, I'm here on the platforms of Southern Pacific's 3rd and Townsend Street Station in San Francisco, and it's 1952 here. If you come to San Francisco, don't bother looking for this station, because in your time, the trains will use a new facility of block back at 4th Street. This old terminal will be long gone, and where I'm standing will be inside of a tall building. It's a chilly March 21st morning, and on this stage is 15 years ago. With champagne, dignitaries, and fanfare, the Southern Pacific Railroad launched the Coast Daylight on its very first run to Los Angeles from the station. In your time, you'll still be able to ride most of the train's unique route on Amtrak's Coast Starlight. The first portions of this article describe some of the colorful streamlined trains on which daylight type cars operated, and how the consist of those trains changed over the years. Which brings me to the subject of this little video, introducing the construction segments of the article. Just as the consist of the streamliners under what many changes, the cars themselves went through some developmental changes too. The first daylight cars had steam ejector air conditioning systems that were powered by steam from the locomotive. As early as 1941, it was found to be impossible to maintain the required steam pressure at the end of long trains. New cars received individual air conditioning units powered by propane bottles under each car, and some of the earlier cars were refitted with these new walker-type air conditioning systems. By the 1950s, problems with the car bodies corroding almost sent the whole fleet of streamliners to scrap. Most of the cars were quietly built in with flat sides replacing the original fluted ones. In 1958, the color schemes for the individual streamliners are replaced by stainless steel sides with red letterboard stripe for all SP streamliner trains. The segment of the article in this issue shows how the lightweight cars are gradually modified so you can more closely simulate the appearance of cars in your favorite time period. Keep in mind that many of these changes occurred on other railroads operating lightweight passenger cars too. Coming up in the next months will be the final instalments of this article that demonstrate how you can create a number of essential cars for your trains that are not normally available as plastic models. Even if your interest lies with other railroads such as Southern Railways Crescent Limited or Chicago Northwestern's 400s, the upcoming parts of this article should suggest some ways to build the equipment you would need to model your favorite train. And now, a little preview of all this, beginning with the class 80 BH1 Express car seen on the San Joaquin Baylight, the Starlight and some other SP trains. It has never been made available in plastic and they're moving one of these cars for us over on King Street as I speak.  My friend is waving to us because the car is now parked and it's in the clear so before they block the view with a string of boxcars let's take a look at it right now. This is King Street which divides the passenger operations into the station from the freight tracks on the east side of the street. We're over here to look at the baggage express car in Southern Pacific class 80 BH1. These are former horse cars and have three sliding side doors and large end doors, often called automobile doors with a nominal length of 80 feet they're among the longest head-end equipment on the Southern Pacific. A couple of years ago the railroad removed the collapsible horse stalls and began using these cars in mail and express service and these cars can be seen all over the system but especially on the San Joaquin Daylight, the Lark, the Starlight and the Coast Mail among others. Well there are no ready-to-run kit-form cars of this type in plastic there's nothing even close. Express cars were often unique and I've developed an easy way to build this important type of head-end car so let's take a look in the studio right now. This is the method I use to make my SP80 BH1 models. This is a River Rossi 1920 series heavyweight Pullman car. These have been manufactured since about 1960 and are available online or at SWAT meets. The roof is within a couple of inches of correct for the 80 BH1 car. There are two types of car ends on this model cut off the end with the brake wheel.  When you cut this out it'll form the automobile doors for the car. Next measure the door frame. I'm using a micro-engineering door and make a cutout to accommodate the door. The door is going to fit behind the panel. I've drawn in the location of the six grant line hinges which are added next. Next add the River Rossi end to the River Rossi roof and glue in place. I marked the cutting lines on the parts according to the diagram. Next set the part in a miter box and carefully cut. The Northwest Short Line True Sander has a sanding block and a fence. Place your part along the fence and press against the sandpaper working back and forth until you have a true edge. Now begin to assemble your car gluing against the roof and end to begin with and then add your parts one piece at a time. The Bethlehem Car Works sides have a slot near the bottom which is excellent for holding a snap in floor. This is the Bethlehem Car Works 30B Fish Belly Underframe. I spliced two of these to stretch the length for the 80 foot cars. And here I have a set that's installed for a 70 foot car for another project with some of the brake system added. And I can show you that this snaps in very easily to the Bethlehem Car Works sides like that. Now fit the automobile end to the completed car sides. Add a buffer and end details. Add the garland vents to the roof. And you're ready to add hand grabs and paint your model. For some of the passenger cars that are unavailable is ready to run models. Manufacturers make sets of sides that fit car core kits. Let's take a look at some of these car core kits and how they work. This is a car core kit. This one's from Eastern Car Works for an 85 foot car. Now this one has the air conditioning units molded into the floor. But some kits give you a plain floor like this one. It's got a roof. This one includes trucks and some other details. And a pair of ends. Assembly is very simple. Paint the roof, paint your ends. Assemble the ends to the roof. Make sure that you sand off any gluing surfaces. And one other detail. One end should have the door open for the vestibule. My coach sides are washed and dried and are ready to be painted. So I don't want to touch them. But this is a set of Union Station car sides. And they give you the clear backing and the car side. The windows and door detail are laser cut. There are also holes to drill out for the hand grabs. Now paint your sides. Now you can glue the side to the acrylic. And these are the car sides that I've painted up for. An 83C5 daylight car. The Shasta type with a very large window. All you need to do now is to assemble the sides. To the body. Now you can just snap the floor in place. And you'll see what your model looks like. Completed. Now you have the diaphragms and any other details that you want. For a complete car. We took the ferry across and now we're in Oakland. The Southern Pacific's Bay Area Station for the Overland Route trains. The ferry docks are in the same buildings as the passenger station. And my friends are inside drinking hot coffee. Because we just learned that the city of San Francisco. That should have been passing in front of our cameras now. Are running hours late. Instead I found this class 77 BP60 Railway Post Office car. Rebuilt from a 1937 vintage horse car. These in the similar 80 BP60 cars. Run on the San Joaquin daylight. The West Coast train and the owl. This car must be in protect or standby service. Or it probably wouldn't be here now. This is not the streamlined observation car. With the drum head that I envisioned to end this video. I hope you'll enjoy this article. And found it's useful. This is Victor Roseman on a cold windy day. In Oakland California in 1942.


I also think there was an interesting flow there from your definition Hashim of how cities are very much shaped by their geographies at many levels. And your point is about the intense relationship between regulation or lack of and the spatial structure of the city which you've then analyzed. Now we move together to the discussion in doing that we have five extremely distinguished speakers who know an enormous amount not only about the distribution of cultures and cities at an international level because of the background they have but also in some cases a deep knowledge of the city itself. So I'm going to start by asking Sophie Baudi-Gendro who is a sociologist who's worked very closely with the urban age since its inception, director of the Center for Urban Studies at Assault Bonne to start with her contribution and I will be tight on time with everybody so that we can have a brief discussion later on. Thank you. Thank you, Ricky. The scope of the topic defines in itself its limitation. There are indeed many cities in the world the evolution of which does not require any confrontation with the past and out of mere charity I will not enumerate their names. Obviously this is not the case of Istanbul. The position I would like to define here is based on the term confronting in the title of this communication and it is indeed my assumption that we are mystified by a past that contemporary observers tend to embellish by comparison with the difficulties of the present and the uncertainties of the future. I do not think that this position is legitimate. The past is full of queries and of negative accounts but obviously literature is among the guilty actors. Here I'm sure in this room everybody has in mind invisible cities by Italo Calvino and in the book Marco Polo's cities are elusive yet everywhere. All cities are one and no one city contains them all. In its stories, the musings, the cities are problematized and its dizzying possibilities are explored but there is not just literature there is history. History tends to magnify the lives of the powerful few and to provide the nation states as the natural successors of empires and obviously we know better now and we know that in the past life was harsh and full of spoilations and wars and lifespan was small. I'm not going to develop this. I would like to ask three questions. What is transmitted? How is the screening process operating? Can the ephemeral the transient dig in and what can be done to give residents a sense of belonging and of care for the city? What is transmitting? I just learned that at the French National Library there are four million volumes that have never been required by anybody and I wonder if Google is going to register them or not. The elites want to decide for the better and we have in mind Baron Osman who at a certain moment erased chunks of the city for better health, for trade. With the emperor he had the body politics in mind but the subtext was that he wanted the gun machines to get in better in the city if we voted working class neighborhoods were going to erupt. We also know about China that many historical neighborhoods are erased for a better future for the masses. Obviously there are unlined minds among architects, urban planners and designers who try both to keep in the past and offer a more adjusted present, taking in the requirements of our time. Second question, can the ephemeral the transient dig in and here I see two obstacles, the jobs. It's Paul Verilio that says that we are obsessed with speed at our time and it's true that many people follow the jobs where they are, they may not necessarily remain in the city. Secondly as we just heard from the previous presentation, people who settle in may not sure that they will become legitimate owners of their plot, they will be threatened not only by poor newcomers but also by the rich and maybe the state. So we may have done an explanation about the feeling of insecurity in the city. We know that three residents out of four are afraid of mugging, are afraid of assault and I wonder if they know their neighbors. I wonder if they know who their neighbors are, there are also threats of terrorism present in every global city and this city is not spared. So what can be done? How can we give people a sense of belonging and of care about the city where they are? Paul Valérie used to say that if the state is too strong it oppresses us but if it is too weak we perish. There is obviously a middle road to find. We have the Greeks in mind, they provided forums and agoras where the citizens could engage in a conversation and also see the workings of the government and get a sort of sense of decision making. I think that explaining decisions is just as important as making decisions for the citizens. It is likely that if democratic practices are enforced, collective life and differences may mutually coexist. If citizens are caught in a collective engagement, we have then the foundation for political citizenship and for future rights. Then residents will inhabit the city, appropriate its collective memory, then the city will act as a promise, a link, a place where something happens. Thank you. To Aisha Andrzej. Yes. So Aisha, please. Aisha Andrzej, yes. Since I have a very limited amount of time, rather than make my own statements, I am going to address a few questions to the topic of confronting history, which is in the title of this session, and perhaps raise a few questions about the talks themselves. Now I enjoyed Hashim Sarkis' talk, but I also enjoyed reading his piece, which was in, which is printed in the newspaper, and which is titled, It's an Istanbul, Not Globalization. In his talk, he emphasized the geographical location of Istanbul, the notion of hinge cities to some extent, or parallels between Mediterranean cities, and the ways of thinking about them. In his written piece, he focused on, or foregrounded, Istanbul's imperial past, which I find more intriguing, frankly, and it is global cities, imperial pasts multiple, is a topic that's never discussed, as far as I can tell. So what then are the kinds of issues he brings up? What does, how is this imperial past relevant for today? I can at least think of three different ways, which are indirectly, sometimes, and sometimes directly mentioned in the piece itself. There is, on the one hand, his references to his own autobiography in the piece, which raises questions about the trauma of ethnic clansings, which accompanied the dissolution of Ottoman Empire and the rise of Ankara as the emblematic of Turkey's modernity as a nation state. So in this sense, it reminds us of the ways in which history is implicated in the present through traumatic events, ethnic clansings, et cetera, in a lot of 20th century nationalisms, let us say, if not too broadly. So in all cities which have been transformed through 20th century nationalisms, such traumas are perhaps, such traumas can be talked about perhaps, but I think stumble is ranks among the first in terms of the ethnic clansings that accompanied this process. Now, also, of course, his piece draws attention to a different, also to a different way in which the past is somehow implicated in the present. And that is, of course, the ways in which the history of cities is marketed in transnational markets today. This is common to most cities, and however ambiguous it may be, most cities market their legendary history and market themselves as city of culture. So certainly, Stumble's marketing of its 2,000 years of history in transnational markets is a very significant way in which history is implicated in the present. The broader parameters of the transformation of Stumble's history into commercial revenues is once again familiar, and a number of people talked about it in their articles, a series of urban restoration projects supported by coalitions of government, and corporate run interests have obliterated from memory some of the most densely populated areas of the city in the very recent past. This is a process that is going on at the present as well. But each of these opens up a whole Pandora's box of different kinds of questions, of course, to make it short. But I think that Sarkis's piece, that's the written piece, also conjures in my mind different historical narratives of the Ottoman past. These are not official, unofficial narratives at the moment, but Stumble's imperial past is currently a site of political struggle in the present. This imperial, what, which of the multiple layers of this imperial past represents the future of the city is a site of political struggle. And the piece by Sarkis, intriguing as it is, because it raises the question of how imperial Stumble's linkages with the Middle East and its neighboring countries are being revitalized now. It also, I think, presents a vision of Stumble's future that is very much that of Akbar. Could I ask maybe Hashim to address this now very briefly? Can I continue? Two more sentences. Because it's a vision that reaches back to 17th century Stumble, to the tolerance of Islam towards Christians and Jews. So it is a vision of a multicultural Stumble that is a buzzword, obviously, but one that progressively erases from the fabric of the city all signs of its 19th century Bel-Apoc multiculturalism. So sorry to be directing, addressing your piece, but I think that it brings up a host of issues about the ways Stumble's history haunts the present, if you like the term. And I think that we should think about the ways in which the history of Paris, the colonial history of Paris haunts Paris or Berlin or London. Come back. Can you both turn off your microphones? So Hashim, very briefly, you respond. Thank you for a very generous and thorough reading of my piece. I wanted to respond maybe with several unrelated comments. First, both the idea of the empire or empire capital and the idea of the Mediterranean city are antithetical to what we understand to be the logic and order of the nation state. That my interest in both has a lot to do with at least what I see as a positive move in the advent of the global age or global city and the urban age, is that we are now looking for other models to describe both the future but also the past of this urban age. And that cannot be confined to the logic of the nation state. And so the Mediterranean city is very logic in terms of its connection to networks, its sort of ambivalent relation to the hinterland is yet another confirmation of the history of an empire in its relation to its territory. The Ottoman Empire has exercised over 500 years of its control of the region. Very different strategies, particularly with the Middle East. Initially it could probably be best described as a kind of plasticity that someone like Roberto Mangabera Unger has written in terms of relation between plasticity and power. But that later on it became much more of a visual symbolic militaristic presence, particularly after the disappearance of control over the Balkans and the European side. It's interesting to see that the project of modernization that took place in the 19th and early 20th century between Istanbul and the rest of the Arab world was more of a let's modernize together. And there was even a kind of rivalry between Istanbul and Cairo that started after the Napoleonic invasion, which could be an interesting model also to think about today in relation to the kind of power relationships between these regional global centers and the rest of the region. That could be a fascinating thing to look at. But I also want to point out that both in terms of its connection to the Mediterranean and its connection to the empire, Istanbul has maintained long periods of ambivalence towards that the relation with the Middle East today is more about an aftermath of having achieved a particular position that it's using the Middle East to kind of strategize globally. And I think historically we can say the same has happened. Well, in your essay you mentioned Dubai Tower. So maybe it's the Middle Eastern capital now coming into Istanbul. This is one of the powerful images now, isn't it, of this new connection. And also maybe the Panorama Museum, which celebrates the conquering of Istanbul, Constantinople. Again, it's the imperial past coming back to Istanbul, but in a very ideological way. So I'd like to give word to now Murat Belge, who has written a lot about these issues. I'm not an urbanist or an architect, although I must confess I also have some architects as my good friends. So I'm interested mainly in the Istanbul that I love. And from the 80s I started on the request of a friend of mine who was running a cultural society at the time to take people around the city and show them. And so this is mainly my experience. Before that I was a sort of lone lover of the city and wandered alone, like a cloud, like Wordsworth. But then I started wandering around with certain people, showing them places, etc. Now I will also want to start with this history question, the confrontation with history. My premise is that I think we Turks have not treated Istanbul properly. That's the way I feel. And the reason for that, my main interpretation to understand why is our relationship with history before our relationship with the city. Via the medium of that relationship we have, what I would call maybe sort of diametrically opposed to basic attitudes towards this city. One started actually with the Republic, but also Turkish nationalism started with the Republic. And all of a sudden all the glorious past of Istanbul etc. did not really conform to the ideals of the nation state as you were saying. So we had to go to the heartland of Anatolia to discover the pure and whatever unspoiled soul of the Turkish nation. And we had to get rid of the Sultanate, first of all, because there was this crisis of legitimation. After 600 years of empire, you're stepping into the Republic and how do you legitimate that? So one method is to say the empire was bad, the Sultanate was bad. You make a parenthesis out of those 600 years and to do that you go to begin your history from Central Asia. And the further east you go into Asia the Istanbul fades more and more. And secondly, as you are punishing the city you are punishing its citizens. And of course foremost to punish are those who are not Turks or Muslims. There were some ambiguities at the time. And so there was real neglect of Istanbul and more or less everything that it represented. When I started as I said in the 80s to take people around, this was during the last real pre-modern military coup that we had because we've been having postmodern ones since. And people in Istanbul were in utter boredom because in sort of this militaristic atmosphere it's made very clear that tomorrow is going to be as dull as today. So we're trying to find forms of entertainment and so I started taking people around. And then I realized that we were making a transition into the second attitude towards Istanbul which is nostalgia. Nostalgia for what we lost because you have nostalgia after you lose and you have no chance of carrying it on. And so it was this multicultural Istanbul that we had the nostalgia about. In Istanbul I can talk of two people, the DNA question, the more cultured as the orange and the red Istanbul. They go around the city, around the main arteries. That's about all they don't know what exists in the next street from the artery. And then there are the blue and dark blue, the Stambos. And those people were living in the areas where I was taking people to show them. The synagogue, the Greek church, the communion church and the abundance of these things because of that past, this is the place you can find the Bulgarian church or a Georgian Catholic church or a Greek Catholic church or an Armenian Protestant church etc. And of course these were all full of surprise for these people.   So it's in this kind of situation, how can we talk about citizens? Gündüz earlier was talking about leading the city to the citizens. Here we have a strange usage of the word hemcheli which means citizen. One man says hemcheli to another citizen, where are you from? And logically they should be from the same city. But the answer is I'm from Kastamolu and the person who asks the question is from Tunjeli. So this is the kind of citizenship DNA that we have. Thank you Murat. Well, we have another person who walks a lot in the city, another historian Orhan Essen. He is taking tours around Istanbul from a rather different point of view and I wonder what there's a nostalgic kind of tone in this conference from this morning onwards as if Istanbul is at a turning point, as if something is radically shifting in the city. And maybe you picked that up in your travels in the city that for instance you don't take your tours to Sulukule which is now a totally demolished neighborhood which is now the sign of what's coming in the city today. So maybe there is some nostalgia around lurking which we don't put a word onto it. I don't know. Can you allow me to say just one sentence because I made all that talk for the sentence but I forgot the sentence. When I talk about this problematic relationship with history, the two types. One is a history that never existed and the second is another history that also never existed. So we have to put this right. I'd like to draw a statement indeed building up on three that were made before so they will help me. There is a very clear analysis of the spatial DNA and the Ipsos Mori's survey of Istanbul, particularly in the point of security, felt and real insecurity. And this morning is a very political intervention which obviously some of us just spent one day in Istanbul and is capable to proceed but our politicians are possibly not. So we hosted the mayor this morning. I think we just heard the opposite type of a statement. So as a historian dealing with the issues of the built environment, of course the first thing you see is in the city that the city has been fully erased and rebuilt in the previous two centuries. And interestingly in the third century, so I'm talking about the 1920s, in each of these centuries the entire building stock of the city has been totally erased and has been rebuilt. In the 20th, a new building stock hasn't added as Issan has put it. And in the 21st century we are again talking about the urban transformation which can you simply read as a third time total erasure and rebuilding action. So what is it all about that? The first one we can also have already heard the name of Baron Osman so we can talk of the Osmanization of Istanbul even in times before Issan's explanation. So that city that was inherited from the Ottomans has already totally erased and rebuilt the old classical Ottoman city. So that city that was inherited by the Republic is indeed a modernized city and Ottomanized city if you want to take so. And already an earlier form of private property had been introduced to the city so we can, if you just go from a pure use right to the full property in terms of making capitalism on land possible. So there are different grey shades and Istanbul history is kind of just a transition from different shades of the grey so to speak. So the longer 19th century from 1830s to 1920s has been totally erasing that city. And the second process we can speak of, the first one maybe we can bring together with the concept of enlightened despotism in a way and modernizing the city. But the second one that's mainly starts with 1965 laws that enables property in the air as we can see in a rather pragmatic way it just enables for the old Istanbul middle classes to maximize their living space in an utmost period of demographic pressure. But today if you talk of an urban transformation in the 21st century we rather think of two areas. One is the area where Murat walks around. So this is let's say the impoverished geography of Istanbul at the center. Indeed mainly those parts of the 19th century Istanbul which has been rather slightly affected by the modernization of 1965 that had been converted into a slum area. But the second in the slum areas. The second is the areas which again Eastern has put as these informal settlements areas which indeed were very successfully converting themselves after 1985 into something different from a Gececonda city into a post Gececonda city. And today we attach all kinds of negative properties to the city. So when we talk about urban transformation we indeed talk of irresponsible property. So both the inner city slums which are targeted to the new law 5366 or the informal settlement areas which are targeted to different older laws and which will target of a new prepared law of urban transformation in order to prevent disaster risks like earthquake risks. So in both cases the saying is the following. You have an entrusted property but you dealt improperly or irresponsibly with this property. So now it's time that we disappropriate you and just give you say parts of it back in order to just in case you are able to buy it back. This is whatever exactly is happening in Sulukule and it's also happening in many other informal settlement areas. Just at this point the reasons are very multifold for this but I just want to point out to just one of them. I want to compare Sao Paulo's and Istanbul's security situation as we have heard in this survey of urban age. So the real homicide rate in Istanbul is 3 per 100,000 which is one of the worldwide lowest. So just less than half of for instance New York's and at the same time Sao Paulo has 21 per 100,000 people are killed. So obviously Istanbul is 7 times more security than Sao Paulo is. However if you just look at the perceived insecurity in these two cities you will see that Istanbul's by 74% are afraid of being attacked on the street where Sao Paulo's are only by 47%. So there seems to be a very particular issue maybe you can say it's also the package of our history. The perceived insecurity in Istanbul is kind of irrational. There's an irrationality. And one of the major drives of urban transformation is this perceived insecurity. However we know by many other cases the way our urban transformation is going to happen the way it is planned by our mainstream academia, mainstream politicians and the industry we're possibly going to produce a city which will be much more likely to produce real insecurity. Maybe if we have just once produced that city maybe we will feel more secure as we will start as we just begin coping with this real insecurity situation. Thank you. I'd like to give the floor to Pelintan. She's an art historian and she's also doing lots of different kinds of compiling different stories of the city and publishing these different cities from artists, communities and activist communities. Perhaps you could comment. Yeah, may I have my notes? Especially through my experience in the last 15 years I worked a lot with artists especially. I learned several different representation of the city. And this is mainly a different kind of analysis and explanation that often be sociologists, architects or even art historians too. And these practices or these kind of representations by visual artists always come from everyday life practices. I think the city has overlaid spatial practices and it is not easy to describe or generalize the differences, the thresholds, either in urban identity level or in the mean of public space, the mean of share of public space through these kind of representations. And how can we capture differing spatial narratives of different parts? I always try to go to the street life, everyday life, how in the street I myself as an Istanbulan and also as coming from a social science field, how I negotiate on the street of Istanbul. As an inhabitant I live in a gypsy occupied street since last eight years.  I have to negotiate everyday when I go out from my door and come back in the evening. But as a negotiation is how we share the street, how we represent or self in the street and what we want and what we don't want. And there is a lot of conflict inside this practice. And I don't want to marginalize here and I don't want to make it as an exotic element. I would say it's a kind of sadomaso practice. This is also a kind of relation, your relation yourself, both as an inhabitant and a social scientist or whatever scientist you are with Istanbul. And this is a potential, I believe, of this conflictual situation, this antagonistic, let's call it like that. It says a potential to analyze a city or to leave different kind of experiences. The last thing I would say, I want to say now, as maybe Orhan Bit mentioned, of course in the last few years we are under pressure of this municipal urban state transformation projects that affects the local communities and their move in the city, their forced move or forced transformation in the city. This is also a kind of problematic condition now what is happening in the city. I still believe this conflictual situation, this antagonistic practice can create a kind of way of to call Istanbul as an open city. I remember, I want to refer your talk, when you talked about Calvino, he had a talk in 1974 in Milan called Kuala Utopia, what kind of utopia? And he was trying to comment on the recent cities and he was, I will try to remember, but he was telling something like, for him open city is a conditioning becoming city, which is open and how communities come together, commune together, having their singular position and they can create the study of multiple cities. You can call it as a romantic way, but it's also a kind of radical way, as all romanticism is radical always. Thank you very much. Well as a way of wrapping up maybe, we've got another 10 minutes or so. I think to pick up on Pellin's point about this romanticism or the utopia, I think Richard Sennett asks in his essay, is Istanbul going to be like Frankfurt or he says, is it little Venice, I think he's suggesting, but maybe Pellin is saying, well this kind of romantic idea, Frankfurt suggesting overly gentrified sterile maybe kind of cleaned up urban spaces. So I think that I'm picking, I want to just bring what was talked in the morning here to this table, that Charles Arcada seemed to be saying, well the story is finished in the sense that now Istanbul is entering a real capitalist city development era. Now the whole success story, which was based on perhaps the informal Mediterranean kind of identity, economy is now finishing, so we are coming to a new paradigm, if you like. But I want to just maybe finish with this question, maybe Isan, I mean is there something in the DNA of the city that will resist? And I'm, Suketur Mehta was making this point of other voices, other narratives. Is there something in the DNA of the city and who are these other narratives? He singled out journalists, but Charles Arcada talked about different resistance narratives. And do you see in the DNA perhaps, or Aisha talked about the imperial past, do you see clues as to make us feel hopeful? And if you could address Sophie's question at the same time. Yeah. A couple of comments and answers. First to Pedin's questions about my ambition to match. I think the representation of space has three components. You've got space as it is perceived, you've got space as it is experienced and you have space as it is conceptualized. And all these aspects are of course interrelated and Henri Lefebvre talked about a triolectics of space. These are all interconnected. I have only and only concentrated on the representational aspects of space. I don't have anything to say about, I know the complexity of the situation, but the perceptive aspects and the lived aspects of space are well beyond my competence. And when I come back to the issue Madame Sophie has raised on this new types of citizenship, we are living in global cities as opposed to oppressed and perishable. The loss of the sense of place, if I understood the question well, I think that segregation is as old as cities themselves. But I also think that in the last days with the rise of this global economy, we are now witnessing a totally new transformation of segregation. We are told we are transiting from urban space as a dramatic space to urban space as a topological space in which lives are lived side by side without touching each other. This I think is a sign of the times. We have to reflect upon it. If nothing is done, then perhaps there are causes for concern. But I also believe that we would invent new ways of creating a sense of community and a sense of place. Just let me add something which relates to both. I think that conflict is something very healthy. What you describe of course for your daily life it must not be fun to have to negotiate. You are getting into your home. But for us observing violence, violence is the worst because that means just as you said atomized side by side people not talking to one another, calling the police because they cannot even knock on the door of their neighbors if they are too lousy. Whereas when there are conflicts, at least there is some vitality and some commonality that is expressed. That's what I meant. Hashim, to save your voice, you only have one minute. I just wanted to comment about the danger of essentialization in our understanding of cities. Rather than looking at what is the essence of Istanbul looking at how what we understand to be the city's DNA is actually coded. What I like about the way that you use DNA is rather than taking the term to mean what is essential about the place you presented to say what is the code that has been written to produce the city or what are the different codes that have been written to produce this place because that would allow us to also rewrite them and transform them. Thank you very much. I would like to close this session and the first day by making a very simple metaphor as we sit in this fishbowl looking out towards a history that we're not sure when it was. It certainly looks much older than it is. I think we've certainly tried to address the issue of confronting history through the excellent presentations and the very precise comments from the panel. I ask you to join me in thanking all the panel and all the speakers for this session. Thank you very much.