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:

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 $$2\mathrm{.}08$ per pound; property, plant, and equipment was acquired in $2018$ when the exchange rate was $$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:

January $1$ $ $1\mathrm{.}67$

April $11\mathrm{.}61$

September $11\mathrm{.}72$

December $311\mathrm{.}54$

Weighted average $1\mathrm{.}59$

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 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.