Hanxhari Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2017 relating to Hanxhari Ltd’s motor vehicles, which had previously been revalued upwards by $7000, are as follows:

Motor vehicles Less: Accumulated depreciation

$88000   22000

$66000

At the date of the revaluation increase (1 July 2016) 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 2017, Hanxhari Ltd was informed that the fair value of the vehicles was $50000. The useful life and residual value have not changed. At 30 June 2018, the carrying amounts are not materially different from fair values.

Required

A. Prepare the necessary general journal entries at 31 December 2017.

B. Calculate depreciation expense at 30 June 2018.

C. How would the motor vehicle be shown in financial statements at 30 June 2018?