Harrison Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2023 relating to Harrison Ltd's motor vehicles, which had previously been revalued upwards by $28000, are as follows. Motor vehicles Less: Accumulated depreciation $ 352 000 88 000 $ 264 000 At the date of the revaluation increase (1 July 2022) 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 2023, 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 2024, the carrying amounts are not materially different from fair values.

Harrison Ltd has a policy of revaluing its motor vehicles to fair value. The details at 30 June 2023 relating to Harrison Ltd's motor vehicles, which had previously been revalued upwards by $28000, are as follows. Motor vehicles Less: Accumulated depreciation $ 352 000 88 000 $ 264 000 At the date of the revaluation increase (1 July 2022) 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 2023, 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 2024, the carrying amounts are not materially different from fair values.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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