Gamma Ltd
 Date: 31 August 2023

Details:

1. Raw material inventory (plastic):
   • Cost: £29,000
   • Replacement cost: £27,000
2. Finished goods inventory:

Product	Alpha	Beta
Direct costs	£60,000	£50,000
Proportion of fixed overhead	£16,000	£14,000
Proportion of selling costs	£4,500	£4,000
Net realizable value	£95,000	£75,000

3. Vehicles:
    Acquired on 1 September 2016 for £310,000, depreciated over 9 years using the straight-line method.
4. Buildings:
    Acquired 14 years ago for £2,700,000, land value estimated at £650,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £620,000
   • Development costs: £1,090,000, benefiting over 6 years.

Required:
 Analyze the financial statement impact of these items for Gamma Ltd as of 31 August 2023.