The Marketing Department of Large Mart have launched a new cutting-edge product for sale. The product is an interactive screen which allows customers to present interactively with sound, touch and animation. In order to assist the Sales Department achieve ambitious sales target in the new product, Large Mart purchased the following items:

A Mercedes Benz Sprinter Van used to transport interactive screens.

Two collaborative hubs used for demonstration and training.

The Van was purchased on credit on 15th April 201x. The cost of the Van was $95,000. Large Mart received the Van on 21st April 201x but before the Sales Department was able to start using the Van, a special auto lift conversion was required at a cost of $5,000. Once the special auto lift conversion was completed the sales team was able to start using the Van on 25th April 201x. The Van was paid on 30th April 201x and Large Mart received an early payment discount of 7% when the payment was made.

Large Mart expects to use the Van for a period of 10 years. At the end of its useful life, the Van is expected to have a residual value of $5,000. The depreciation method used for the Van is identical to the method that Large Mart is using for other cars (the declining balance method of depreciation). Large Mart has calculated the declining balance depreciation percentage of the Van as 20%.

On 1st July 201x, the accounting department of Large Mart decides to revalue the Van to its fair value of $104,000.

The collaborative hubs were purchased on credit from Next Office Tech. They were received on 1st April 201x. The collaborative hubs had a list price of $12,300. However, because Large Mart purchases all its collaborative hubs from this supplier, Large Mart was able to receive a volume discount of 15%. As a result, the supplier sent Large Mart an invoice for the list price less the 15% volume discount. Large Mart paid the collaborative hubs on 5th April 201x after deducting an early payment discount of 3%

question

Provide all journal entries that are necessary in the books of Large Mart to account for the revaluation of the Mercedes Benz Sprinter Van on 1st July 201x AND provide a detailed outline of all required calculations.