Psi Corporation
 Date: 31 December 2023

Details:

1. Raw material inventory (metal):
   • Cost: £33,000
   • Replacement cost: £31,000
2. Finished goods inventory:

Product	Gamma	Delta
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£18,000	£15,000
Proportion of selling costs	£5,000	£4,500
Net realizable value	£110,000	£85,000

3. Equipment:
    Acquired on 1 January 2019 for £310,000, depreciated over 10 years using the straight-line method.
4. Buildings:
    Acquired 12 years ago for £2,300,000, land value estimated at £500,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £340,000
   • Development costs: £530,000, benefiting over 7 years.

Required:
 Explain how these items should be reflected in Psi Corporation's balance sheet and income statement for the period ending 31 December 2023.