Problem 2. Park Corporation, a US company, formed a British subsidiary on January 1, 2017 by investing E450,000 in exchange for all of the subsidiary's no-par common stock. The British subsidiary, Sar Corporation, purchased real property on April 1, 2017 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 Sar'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, 2017 April 01, 2017 December 31, 2017 2017 average rate 1E $1.50 1E $1.51 1E- $1.58 1f- $1.56 Sar's adjusted trial balance is presented below for the year ended December 31, 2017. In Pounds Debits: E 220,000 52,000 59,000 400,000 100,000 7,500 110,000 220,000 Cash Accounts receivable Inventory Building Land Depreciation expense Other expenses Cost of good sold Total debits 1,168,50 Credits Accumulated depreciationf Accounts payable Common stock Retained earnings Equity adjustment Sales revenue Total credits 7,500 111,000 450,000 600,000 1,168,500 Instructions: Prepare Sar's: 1. Translated trial balance 2. Translated income statement; and 3. Translated balance sheet. 13-1