Tau Inc.
 Date: 31 January 2024

Details:

1. Raw material inventory (metal):
   • Cost: £32,000
   • Replacement cost: £30,000
2. Finished goods inventory:

Product	Alpha	Beta
Direct costs	£75,000	£60,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£6,000	£5,500
Net realizable value	£115,000	£90,000

3. Furniture:
    Acquired on 1 February 2018 for £300,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 17 years ago for £2,500,000, land value estimated at £650,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £540,000
   • Development costs: £930,000, benefiting over 6 years.

Required:
 Analyze the financial statement impact of these items for Tau Inc. for the year ending 31 January 2024.