Eta Ltd
 Date: 31 March 2024

Details:

• Raw materials inventory (steel):
  • Cost: £32,000
  • Replacement cost: £30,000
• Finished goods inventory:

Product	Theta	Lambda
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£4,000	£3,500
Net realizable value	£100,000	£85,000

• Office machinery:
   Acquired on 1 April 2016 for £280,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 18 years ago for £2,400,000, land value estimated at £700,000. Buildings are depreciated over 55 years.
• Research and development:
  • Research costs: £180,000
  • Development costs: £230,000, benefiting over 5 years.

Required:
 Explain how these items should be reflected in Eta Ltd's balance sheet and income statement for the year ending 31 March 2024.