Mr. Lee, a motor van driver, prepared a draft financial statement for the year ended 31 December 2022 as follows: As an accountant, you obtained the following information from Mr. Lee: (i) The motor van was purchased on 1 October 2021 and paid on 1 January 2022 for $80,000. The asset value was assumed to be reduced on a straight-line basis and it was estimated to have no scrap value after 5 years. (ii) Mr. Lee wondered whether the van may be reported at its net realisable value $50,000 on the balance sheet as at 31 December 2022. (iii) Analysis of licence and insurance showed that: (1) $2,000 licence fee for the year ended 31 December 2022 was paid on 1 February 2022, and (2) $6,000 insurance premium for the year ended 30 September 2022 was paid on 1 January 2022. Policy for the renewal of insurance covering the year ending 30 September 2023 had been issued. But the insurance premium of $8,000 has not yet been paid. (iv) The stereo hi-fi equipment is used by Lee's family. (v) The cost of spare parts was included in repairs and maintenance expenses except those not yet used at a cost of $20. You are required to: (a) indicate which accounting concept should be noted with respect to each of the above items, and advise Mr. Lee what the appropriate accounting treatment for each should be and explain your reasoning. (17 marks) (b) prepare for Mr. Lee an income statement for the year ended 31 December 2022 (3 marks )