Pike Corporation, a U.S. Company, formed a subsidiary with a new company in London on January 1, 2017, by investing 200,000 British pounds in exchange for all of the subsidiarys common stock. The subsidiary purchased a building for 300,000 pounds on July 1, 2017. The building is being depreciated over a 30-year life by the straight-line method. The inventory is valued on an average cost basis. The British pound is the subsidiarys functional currency and its reporting currency and has not experienced any abnormal inflation. Direct exchange rates for the pound on various dates were:

January 1, 2017 1 pound = 1.61

July 1, 2017 1 pound = 1.66

December 31, 2017 1 pound = 1.63

2017 average rate 1 pound = 1.62

The subsidiarys adjusted trial balance is presented below for the year ended December 31, 2017.

Debits In Pounds

Inventory 100,000

Building 300,000

Depreciation expense 5,000

Cost of goods sold 250,000

Other expenses 55,000

Total debits 710,000

Credits

Accumulated depreciation 5,000

Accounts payable 80,000

Common stock 200,000

Retained earnings - 0 -

Sales revenue 425,000

Total credits 710,000

Required: Using the current rate method prepare the subsidiarys:

A. Translated workpapers (round to the nearest dollar)

B. Translated income statement

C. Translated balance sheet