Delta Inc.
 Date: 30 September 2023

Details:

• Raw materials inventory (metal):
  • Cost: £35,000
  • Replacement cost: £33,000
• Finished goods inventory:

Product	Gamma	Delta
Direct costs	£70,000	£60,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£5,000	£4,500
Net realizable value	£110,000	£90,000

• Office machinery:
   Acquired on 1 October 2017 for £330,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 16 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £630,000
  • Development costs: £1,110,000, benefiting over 7 years.

Required:
 Discuss the treatment of these items in Delta Inc.'s financial statements for the period ending 30 September 2023.