Equipment: Acquired on 1 October 2021 for £250,000, with a useful life of 8 years and a residual value of £5,000. Straight-line depreciation method is applied.
Freehold land and buildings: Purchased 15 years ago for £1,000,000, land portion estimated at £150,000. Buildings are depreciated over 40 years.
R&D expenses:
Research: £25,000
Development: £35,000, benefiting for 6 years.
Required: Explain the impact of these items on Gamma Ltd's financial statements for the period ending 30 September 2023.
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