Tau Ltd
 Date: 31 January 2024

Details:

• Raw materials inventory (wood):
  • Cost: £42,000
  • Replacement cost: £40,000
• Finished goods inventory:

Product	Alpha	Beta
Direct costs	£85,000	£65,000
Proportion of fixed overhead	£20,000	£15,000
Proportion of selling costs	£5,000	£4,000
Net realizable value	£130,000	£100,000

• Machinery:
   Acquired on 1 February 2020 for £350,000, depreciated over 10 years using the reducing balance method.
• Freehold property:
   Acquired 20 years ago for £3,000,000, land value estimated at £800,000. Buildings are depreciated over 50 years.
• Research and development:
  • Research costs: £90,000
  • Development costs: £110,000, benefiting over 5 years.

Required:
 Prepare the necessary financial statements adjustments for Tau Ltd as of 31 January 2024.