Nu Corporation
 Date: 31 August 2023

Details:

1. Raw material inventory (glass):
   • Cost: £39,000
   • Replacement cost: £37,000
2. Finished goods inventory:

Product	Rho	Sigma
Direct costs	£75,000	£60,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£4,500	£4,000
Net realizable value	£115,000	£90,000

3. Furniture:
    Acquired on 1 September 2016 for £180,000, depreciated over 9 years using the straight-line method.
4. Buildings:
    Acquired 13 years ago for £2,200,000, land value estimated at £550,000. Buildings are depreciated over 60 years.
5. Research and development:
   • Research costs: £240,000
   • Development costs: £330,000, benefiting over 6 years.

Required:
 Explain the financial statement impact of these items for Nu Corporation as of 31 August 2023.