Harrison Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2026 relating to Harrison Ltd’s motor vehicles, which had previously been revalued upwards by $28000, are as follows.

Required

(a) Prepare the necessary general journal entries at 31 December 2026.

(b) Calculate depreciation expense at 30 June 2027.

(c) How would the motor vehicle be shown in financial statements at 30 June 2027?

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Motor vehicles Less: Accumulated depreciation $ 352 000 88 000 $ 264 000 At the date of the revaluation increase (1 July 2025) the vehicles had a zero residual value and a useful life of 4 years. Depreciation has been calculated using the straight-line method. On 31 December 2026, Harrison Ltd was informed that the fair value of the vehicles was $200 000. The useful life and residual value have not changed. At 30 June 2027, the carrying amounts are not materially different from fair values.