Lambda Ltd
 Date: 30 November 2023

Details:

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

Product	Phi	Chi
Direct costs	£60,000	£40,000
Proportion of fixed overhead	£15,000	£10,000
Proportion of selling costs	£3,500	£3,000
Net realizable value	£85,000	£55,000

• Machinery:
   Acquired on 1 December 2019 for £350,000, depreciated over 12 years using the reducing balance method.
• Freehold property:
   Acquired 17 years ago for £2,200,000, land value estimated at £450,000. Buildings are depreciated over 50 years.
• Research and development:
  • Research costs: £50,000
  • Development costs: £60,000, benefiting over 4 years.

Required:
 Detail the impact of these items on the financial statements of Lambda Ltd as of 30 November 2023.