Zeta Corporation
 Date: 30 June 2023

Details:

• Inventory of raw material, wood:
  • Cost: £22,000
  • Replacement cost: £24,000
• Inventory of finished goods:

Product	Gamma	Delta
Direct costs	£50,000	£40,000
Proportion of fixed overhead	£10,000	£8,000
Proportion of selling costs	£2,000	£1,500
Net realizable value	£70,000	£55,000

• Machinery:
   Purchased on 1 July 2020 for £300,000, depreciated over 15 years using the reducing balance method.
• Land and Building:
   Acquired 12 years ago for £750,000, with land valued at £200,000. The building is depreciated over 50 years.
• Research and Development:
  • Research costs: £20,000
  • Development costs: £25,000, benefiting over 3 years.

Required:
 Discuss the treatment of the above items in the financial statements of Zeta Corporation as of 30 June 2023.