Omega Inc.
 Date: 31 October 2023

Details:

• Raw materials inventory (rubber):
  • Cost: £28,000
  • Replacement cost: £26,000
• Finished goods inventory:

Product	Gamma	Delta
Direct costs	£65,000	£55,000
Proportion of fixed overhead	£18,000	£16,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£105,000	£85,000

• Office machinery:
   Acquired on 1 November 2018 for £300,000, depreciated over 9 years using the reducing balance method.
• Freehold property:
   Acquired 16 years ago for £2,800,000, land value estimated at £700,000. Buildings are depreciated over 60 years.
• Research and development:
  • Research costs: £590,000
  • Development costs: £1,030,000, benefiting over 6 years.

Required:
 Explain how these items should be reflected in Omega Inc.'s financial statements for the period ending 31 October 2023.