Tau Ltd
 Date: 30 June 2024

Details:

1. Raw material inventory (cotton):
   • Cost: £34,000
   • Replacement cost: £32,000
2. Finished goods inventory:

Product	Theta	Iota
Direct costs	£75,000	£60,000
Proportion of fixed overhead	£20,000	£18,000
Proportion of selling costs	£5,500	£5,000
Net realizable value	£120,000	£95,000

3. Vehicles:
    Acquired on 1 July 2016 for £360,000, depreciated over 8 years using the straight-line method.
4. Buildings:
    Acquired 13 years ago for £2,500,000, land value estimated at £600,000. Buildings are depreciated over 55 years.
5. Research and development:
   • Research costs: £300,000
   • Development costs: £450,000, benefiting over 6 years.

Required:
 Detail how these items should be reflected in Tau Ltd's balance sheet and income statement for the period ending 30 June 2024.