P4) Pan Corporation, a U.S. company, formed a British subsidiary on January 1, 2014 by investing 450,000 British pounds (E) in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Skillet Corporation, purchased real property on April 1, 2014 at a cost of 500,000, with 100.000 allocated to land and 400,000 allocated to a building. The building is depreciated over a 40-year estimated useful life on a straight-line basis with no salvage value. The British pound is Skillet's functional currency and its reporting currency. The British economy does not have high rates of inflation. Exchange rates for the pound on various dates were: January 01, 2014 - April 01, 2014 - December 31, 2014 - 2014 average rate - 1 - 1 - 16 - 1 - $1.60 $1.61 $1.68 $1.66 Skillet's adjusted trial balance is presented below for the year ended December 31, 2014. In Pounds Debits Cash Accounts receivable Inventory Building Land Depreciation expense Other expenses Cost of goods sold Total debits 220,000 52.000 59,000 400,000 100,000 7.500 110,000 220.000 1,168,500 7,500 111,000 450,000 Credits Accumulated depreciation Accounts payable Common stock Retained earnings Equity adjustment Sales revenue Total credits 600.000 1,168,500 Required: Prepare Skillet's 1. Translation working papers