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Livingston Company is a wholly - owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in pounds ( P

Livingston Company is a wholly-owned subsidiary of Rose Corporation. Livingston operates in a foreign country with financial statements recorded in pounds (P), the companys functional currency. Financial statements for the year 2024 are as follows:
Income Statement
For Year Ending December 31,2024
Sales P 270,000
Cost of goods sold (155,000)
Gross profit 115,000
Less: Operating expenses (54,000)
Gain on sale of equipment 10,000
Net income P 71,000
Statement of Retained Earnings
For Year Ending December 31,2024
Retained earnings, 1/1/24 P 216,000
Net income 71,000
Less: Dividends (26,000)
Retained earnings, 12/31/24 P 261,000
Balance Sheet December 31,2024
Assets
Cash P 44,000
Receivables 116,000
Inventory 58,000
Property, plant, and equipment (net)339,000
Total assets P 557,000
Liabilities and Equities
Liabilities P 176,000
Common stock 120,000
Retained earnings, 12/31/24261,000
Total liabilities and equities P 557,000
Additional Information
The common stock was issued in 2017 when the exchange rate was $2.08 per pound; property, plant, and equipment was acquired in 2018 when the exchange rate was $2.00 per pound.
As of January 1,2024, the retained earnings balance was translated as $396,520.
The U.S. dollarper-pound exchange rates for 2024 follow:
January 1 $ 1.67
April 11.61
September 11.72
December 311.54
Weighted average 1.59
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 parents reporting currency, the U.S. dollar.
1a. Prepare an Income Statement.
1b. Prepare a Statement of Retained Earnings.
1c. Prepare a Balance Sheet.

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