Rho Corporation
 Date: 31 August 2023

Details:

1. Raw material inventory (rubber):
   • Cost: £36,000
   • Replacement cost: £34,000
2. Finished goods inventory:

Product	Lambda	Mu
Direct costs	£70,000	£55,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,000	£4,500
Net realizable value	£110,000	£85,000

3. Office machinery:
    Acquired on 1 September 2016 for £280,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 15 years ago for £2,500,000, land value estimated at £600,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £520,000
   • Development costs: £890,000, benefiting over 5 years.

Required:
 Detail the impact of these items on Rho Corporation's balance sheet and income statement for the period ending 31 August 2023.