Epsilon Corporation
 Date: 31 December 2023

Details:

1. Raw material inventory (plastic):
   • Cost: £45,000
   • Replacement cost: £43,000
2. Finished goods inventory:

Product	Gamma	Delta
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£6,000	£5,500
Net realizable value	£110,000	£85,000

3. Furniture:
    Acquired on 1 January 2019 for £300,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 15 years ago for £2,700,000, land value estimated at £600,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £400,000
   • Development costs: £650,000, benefiting over 6 years.

Required:
 Explain the financial statement impacts for Epsilon Corporation as of 31 December 2023, considering these details.