One of the Happymarket Berhads van was involved in an accident and damaged beyond repair when delivering products to customer. The management has decided to write off the van from the companys book as at 31 December 2020. The van was purchased on 31 March 2017 at a cost of RM52,000. Happymarket Berhad received a cheque of RM15,000 from Etiqa Insurance as compensation. Depreciation to be charged at 10% per annum, straight line method on monthly basis.

a. Identify whether the van is an asset of the company as at 31 March 2017. (4 marks)

b. Explain whether the van can be classified as one of the items of property, plant and equipment in accordance with MFRS116 Property, Plant and Equipment as at 31 March 2017. (3 marks)

c. Advise the management of Happymarket Berhad on the accounting treatment of the disposal of the van. (5 marks)

[12 marks]