Gamma Ltd
 Date: 30 September 2023

Details:

1. Raw materials inventory (plastic):
   • Cost: £28,000
   • Replacement cost: £32,000
2. Finished goods inventory:

Product	Theta	Sigma
Direct costs	£60,000	£35,000
Proportion of fixed overhead	£12,000	£10,000
Proportion of selling costs	£3,000	£2,500
Net realizable value	£90,000	£50,000

3. Equipment:
    Acquired on 1 October 2021 for £250,000, with a useful life of 8 years and a residual value of £5,000. Straight-line depreciation method is applied.
4. Freehold land and buildings:
    Purchased 15 years ago for £1,000,000, land portion estimated at £150,000. Buildings are depreciated over 40 years.
5. R&D expenses:
   • Research: £25,000
   • Development: £35,000, benefiting for 6 years.

Required:
 Explain the impact of these items on Gamma Ltd's financial statements for the period ending 30 September 2023.