What's wrong with bunny?

My son was playing with his bunny rattle (i.e. banging it on the mini trampoline) when it suddenly broke open in half & all the beads fell out.

"Uh-oh." He said.
"What's happened?" I asked.
"Bunny dead," He replied.

I couldn't help but laugh in amazment. I didn't think he understood that concepts. Maybe I'm wrong but that's sure what it sounded like! Of course he was a good boy & helped me pick up all the beads nicely; then it was back to playing.