Nu Corporation
 Date: 31 January 2024

Details:

1. Raw material inventory (synthetics):
   • Cost: £35,000
   • Replacement cost: £33,000
2. Finished goods inventory:

Product	Theta	Iota
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£110,000	£85,000

3. Equipment:
    Acquired on 1 February 2018 for £320,000, depreciated over 10 years using the straight-line method.
4. Buildings:
    Acquired 15 years ago for £2,600,000, land value estimated at £650,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £720,000
   • Development costs: £1,290,000, benefiting over 5 years.

Required:
 Explain the accounting treatment for these items in Nu Corporation's financial statements for the period ending 31 January 2024.