Sheridan Corporation traded a used truck (cost $27,600, accumulated depreciation $24,840) for a small computer with a fair value
of $4,554. Sheridan also paid $690 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
When there is commercial substance (which is when there is a change in cash flow resulting from the transaction), the parties should recognize a gain or loss on the exchange. If there is no commercial substance, record the acquired asset at the book value of the asset given up in the exchange
How would private property rights help explain why Taiwan is now so much wealthier than Liberia?
<em>Taiwan is so much wealthier than Liberia in terms of the use of Private property rights because the Taiwanese have many exportable products they have Private Property rights on. The Taiwanese started building from copying technologies of sub-standard goods to quality goods over the years of improvement while the Liberian fought a prolonged civil war without a change to produce products to have a Private Property right on.</em>
Explanation:
<em>The Book of Things</em><em> </em>in Taiwan Civil Code was overhauled between 2007 and 2010. This chapter coded the amendments and found:
(1). 97% of the proposals by the task force (composed of property scholars and judges) were accepted verbatim by the legislature;
(2). Property laws in Japan, Germany, and Switzerland heavily influenced this round of amendments. The (unconventional) story behind the legal changes is that scholars and judges are the <em>“interest group</em>” that drives these amendments.