Problem $8-33($Static$)($LO $8-3)$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 StatementFor Year Ending December $31,2024$SalesP $270,000$Cost of goods sold$(155,000)$Gross profit$115,000$Less: Operating expenses$(54,000)$Gain on sale of equipment$10,000$Net incomeP $71,000$Statement of Retained EarningsFor 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 CashP $44,000$Receivables$116,000$Inventory$58,000$Property, plant, and equipment $($net$)339,000$Total assetsP $557,000$Liabilities and Equities LiabilitiesP $176,000$Common stock$120,000$Retained earnings, $12/31/24261,000$Total liabilities and equitiesP $557,000$Additional InformationThe 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 $$396,520.$The U$.$S$.$ dollarper$-$pound exchange rates for $2024$ follow:January $1$$ $1\mathrm{.}67$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 parents reporting currency, the U$.$S$.$ dollar$\mathrm{.}1$a$.$ Prepare an Income Statement$\mathrm{.}1$b$.$ Prepare a Statement of Retained Earnings$\mathrm{.}1$c$.$ Prepare a Balance Sheet.