Livingston Company is a wholly$-$owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial

statements recorded in pounds $($P$),$ the company's functional currency. Financial statements for the year $2024$ are as follows:

Additional Information

The common stock was issued in $2017$ when the exchange rate was $$2\mathrm{.}08$ per pound; property, plant, and equipment was acquired

in $2018$ when the exchange rate was $$2\mathrm{.}00$ per pound.

As of January $1,2024,$ the retained earnings balance was translated as $$396,520.$

The U$.$S$.$ dollar$-$per$-$pound exchange rates for $2024$ follow:

Inventory was acquired evenly throughout the year.

The December $31,2023,$ balance sheet reported a translation adjustment with a debit balance of $$85,000.$

Dividends were declared on April $1,2024,$ and a piece of equipment was sold on September $1,2024.$

Required:

Assume that the pound is Livingston Company's functional currency. Translate the $2024$ foreign currency financial statements into the

parent's reporting currency, the U$.$S$.$ dollar.

$1$a$.$ Prepare an Income Statement.

$1$b$.$ Prepare a Statement of Retained Earnings.

$1$c$.$ Prepare a Balance Sheet.

Complete this question by entering your answers in the tabs below.

Prepare an Income Statement.

Note: Amounts to be deducted and negative amounts should be indicated with a minus sign.