Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2020, by investing capital in the amount of . 60,000 pounds. The subsidiary immediately borrowed 140,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2021. The subsidiary then purchased for 200,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method Also on January 1, 2020, the subsidiary rented the building for three years to a group of local attorneys for 8,000 pounds per month. By year-end, rent payments totaling 80.000 pounds had been received, and 16,000 pounds was in accounts receivable. On October 1, 2020, 4,000 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 12,000 pounds back to Sullivan's Island Company on December 31, 2020 The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: January 1, 2e2e October 1, 202e December 31, 2e2e Average for 2020 $ 2.ee 1 Pound 2.05 = 1 2.88 = 1 2.84 = 1 Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds, and then translate these amounts into US dollars Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a Income Statement. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Income Statement For the Year Ended December 31, 2020 U.S. Pounds Dollars Rent revenue 58,000 X $ 121,480 X Depreciation expense 20,000 40,800 X Accounts receivable x (16,000) (32,640) X Interest payable x 14,000 28,560 Net income 76,000 $ 158,200 Income Statement Retained Earnings - N Income Statement Retained Earnings Balance Sheet 5 points Prepare a Statement of Retained earnings. (Amounts to be deducted should be indicated by a m SULLIVAN'S ISLAND COMPANY Statement of Retained Earnings For the Year Ended December 31, 2020 Pounds U.S. Dollars Retained earnings, 1/1 0 0 Retained earnings, 12/31 Balance Sheet December 31, 2020 Pounds U.S. Dollars Assets: 0 0 Total assets Liabilities and Equities: Total liabilities and equities 0 s 0 0