The following trial balance relates to Selt plc for the year ended 31 December 2021:

	000	000
Equity shares of 1 each		56,000
Share Premium		2,000
Retained earnings at 1 January 2021		7,780
Property at cost	34,800
Depreciation on property at 1 January 2021		3,200
Plant and equipment at cost	22,800
Depreciation on plant and equipment at 1 January 2021		4,500
Inventory at 1 January 2021	4,900
Trade receivables	4,000
Cash and cash equivalents	6,840
Trade payables		1,560
5% Loan repayable 2026		12,000
Revenue		200,000
Purchases	155,000
Distribution costs	22,050
Administrative expenses	12,750
Research and development expenditure	19,600
Loan Interest paid	300
Dividend paid	4,000
	287,040	287,040

Further notes:

1. Inventory was valued at 3,800,000 on 31 December 2021. (This valuation is before note (4) below is considered).
2. Property includes land valued at 800,000. The buildings are to be depreciated over a period of 20 years. This is an administrative expense.
3. Plant and equipment are to be depreciated at 20% reducing balance basis. The depreciation is to be included in cost of sales.
4. On 30 December 2021, a customer returned goods which were faulty. They had bought the goods from Selt plc for 10,000 cash and the sale had been entered in the accounts. These goods have a reduced sales value of 4,000 and had an original cost of 4,500. Selt plc has agreed to refund the customer in full, but no accounting entries had been made at 31 December 2021 and no refund made.
5. Research and development expenditure includes development costs of 12,600,000 which are to be capitalised. Research costs are to be included in cost of sales. No amortisation is required.

Required:

1. A Statement of Profit or Loss for the year ended 31 December 2021.

(11 marks)

A Statement of Financial Position as at 31 December 2021.